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DOE streamlines LNG export reporting in 'important deregulatory step'

The U.S. Department of Energy will streamline its destination reporting requirements for U.S. LNG exporters, due in part to the complexity of LNG export transactions and the challenges associated with tracking exports to their destination, the department said.

The DOE will now only require U.S. exporters to report the country of delivery for LNG cargoes, not the final destination of the gas, which can be a different country, the government agency said in a Dec. 19 release. Some U.S. LNG export authorization holders are currently required to report the final destination.

"By streamlining the destination reporting requirements, the Department of Energy is taking an important deregulatory step forward in order to better provide reliable U.S. LNG to our friends and allies abroad," Energy Secretary Rick Perry said in the statement.

In addition, the DOE is seeking to provide clarification through a proposed interpretative rule on which types of supply and sales contract agreements need to be reported and when they must be filed. Currently, LNG export authorization holders must report all long-term supply and sales contracts. The proposed interpretative rule is open for public comment for 30 days.

The LNG export capacity of the U.S. is set to rise to 8.9 Bcf/d by the end of 2019, according to the U.S. Energy Information Administration. This could make the country the third-largest exporter of the commodity in the world amid the Trump administration's efforts to boost U.S. LNG exports.