The US Department of Energy announced yesterday that it had issued a conditional approval for LNG exports to countries with which the US does not have a free trade agreement from Dominion’s Cove Point LNG project. This brings the number of projects with non-FTA export approval to four – Sabine Pass, Freeport, Lake Charles and Cove Point – with permission to collectively export more than 6 billion cubic feet per day of natural gas (not accounting for expansions to Sabine Pass and Freeport currently awaiting non-FTA export approval).

Investment bank Simmons & Co noted that Senator Ron Wyden (D-OR), who has been outspoken in his concerns about “unfettered” LNG exports from the US, said the following in response to the Cove Point announcement: “The United States is now squarely in the range that experts are saying is the most likely level of U.S. natural gas exports.  If DOE approves exports above that range, the agency has an obligation to use most recent data about U.S. natural gas demand and production and prove to American families and manufacturers that these exports will not have a significant impact on domestic prices and in turn on energy security growth and employment.”

“Translation:  expect higher scrutiny for any further permits,” Simmons said.