August 05, 2019 [Chron] – Kinder Morgan’s Gulf LNG project in Mississippi took another step forward after the U.S. Department of Energy issued an order authorizing exports from the proposed liquefied natural gas terminal.
Department of Energy officials issued the order on Wednesday giving Gulf LNG permission to export up to 1.53 billion cubic feet of natural gas per day from the Pascagoula, Mississippi site.
The facility now has permission to export LNG to non-free trade agreement nations such as China, Japan, South Korea and France where prices commodity prices are higher than other markets.
“This announcement advances the Trump administration’s commitment to energy security here at home and for our friends abroad,” Energy Secretary Rick Perry said in a statement. “Increased amounts of U.S. LNG on the world market benefit the American economy, American workers, and consumers and help make the air cleaner around the globe.”
The Department of Energy decision comes less than a month after the Federal Energy Regulatory Commission issued Gulf LNG a permit approving the export project.
Kinder Morgan originally developed the 230-acre Gulf LNG site as a liquefied natural gas import terminal in 2009. But with record production from U.S. shale plays creating a surplus of natural gas, the Houston pipeline began the federal application process in July 2015 to redevelop part of the site as an export terminal.
But with a construction and export permits now in hand for Gulf LNG, all eyes are on Kinder Morgan to see if and when the company will make a final investment decision for the project.
“We are pleased with the Department of Energy’s approval of the liquefaction project at our existing Gulf LNG facility,” the company said in a statement. “While this is an important step, there are still multiple factors that need to be met before reaching a final investment decision needed to begin this project.”
If built, Gulf LNG would become the second liquefied natural gas export terminal developed by Kinder Morgan.
Construction at the company’s Elba Island LNG export terminal in Savannah, Georgia, is largely complete but crews are still preparing the facility for production and tanker shipments.