The Department of Energy (DOE) today issued a license to Golden Pass LNG to construct and operate a liquefied natural gas (LNG) export terminal in Sabine Pass, Texas, on a site adjacent to the company’s existing LNG import terminal. The DOE authorized Golden Pass to export up to 2.21 billion cubic feet per day (bcf/d) of natural gas to any country not covered by a free trade agreement and not otherwise prohibited by U.S. law or policy. A copy of the DOE’s order can be found here, and background on the Golden Pass project can be found here.
Manufacturers applaud the DOE’s timely action on a license for Golden Pass LNG, which received final authorization from the Federal Energy Regulatory Commission (FERC) on December 21, 2016. After an exhaustive environmental review and permitting process, FERC concluded that the Golden Pass LNG export project’s environmental impacts would be significant and can be further mitigated with appropriate measures, which FERC required as a condition of the approval. In 2014, the DOE license decision became a regulatory choke point that unreasonably delayed the permitting process for LNG export facilities; we are glad to see that the DOE is giving these projects prompt attention.
LNG export terminals are massive infrastructure projects that create tens of thousands of jobs, including many from manufacturing inputs. Golden Pass is a $10 billion investment in the Gulf Coast that will create jobs across the country for manufacturers who make compressors, heat exchangers, storage tanks, pipes, valves and other components of these state-of-the-art infrastructure projects. Golden Pass alone is projected to create 45,000 direct and indirect jobs during construction, plus several thousand more during operation. Today’s decision from the DOE pushes Golden Pass LNG closer to the finish line.
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