U.S. Department of Energy Finalizes Rule to Expedite Approval for Small-Scale Natural Gas Exports

Today, the U.S. Department of Energy (DOE) announced a final rule that will provide for faster approval of applications for small-scale exports of LNG from U.S. export facilities.

Upon receipt of any complete application to export natural gas (including LNG) to non-free trade agreement countries the DOE will grant the application provided that the application meets two criteria: the application proposes to export no more than 51.75 billion cubic feet per year of natural gas, and the proposed export qualifies for a categorical exclusion under DOE’s National Environmental Policy Act (NEPA) regulations.

For applications meeting these criteria, the rule will consider such exports as “small-scale natural gas exports” deemed to be in the public interest under the Natural Gas Act. Exports of natural gas to countries with a qualifying free trade agreement are already deemed in the public interest under the Act.

“The finalization of this rule will expedite the permitting of certain small-scale exports of natural gas,” said Secretary Perry. “The so-called 'small-scale rule' will further unleash American energy by reducing the regulatory burden on American businesses while also providing significant benefits to our trading partners in in the Caribbean, Central America and South America.”

The final rulewas published in the Federal Register today and will take effect on August 24, 2018.