The House Energy and Commerce Committee (E&C) issued a report encouraging the Department of Energy (DOE) to expedite permitting for liquefied natural gas (LNG) exports to non-free trade agreement (FTA) nations, including India and Japan. Since 2010, DOE has approved five permits, and still has more than twenty pending requests. The E&C report cites a National Economic Research Associates (NERA) report that states U.S. LNG supply is capable of meeting domestic and foreign demands while benefitting the U.S. economy.

The report threatens legislative action, such as allowing exports to World Trade Organization nations rather than FTA nations, if the DOE does not comply.

Rep. Upton (R-MI), Chair of the Energy & Commerce Committee, and others worry about LNG export competition from Canada, which has a total of six proposed export facilities on both the Atlantic and Pacific coasts. British Columbia, where five of the projects are planned, just released their proposed tax on exports.

The DOE’s stance has remained firm since the E&C recommendation, stating it will continue to strictly adhere to permitting practices defined in the Natural Gas Act.

Sources:  E&E News; Government Printing Office; Department of Energy; Bloomberg News; Government of Canada