DOE Authorizes Pieridae Energy to Export LNG to FTA Nations from Canada; Defers Non-FTA Request

The U.S. Department of Energy (DOE) issued an order granting Pieridae Energy (USA), LTD. (Pieridae) authority to export 292 Bcf/year of natural gas from the United States to Canada and, after liquefaction at Pieridae Energy (Canada) Ltd.’s proposed Goldboro LNG Project in Guysborough County, Nova Scotia, to nations with a Free Trade Agreement (FTA) with the United States.  DOE deferred ruling on Pieridae’s request for authorization to export the imported gas as LNG to non-FTA nations.  DOE stated:

In determining whether an export is to a FTA or non-FTA country, DOE/FE believes it must look to the trade status of the country in which the natural gas or LNG is delivered for end use. To do otherwise would allow exporters to evade the public interest review and opportunity for public participation afforded in non-FTA export proceedings under NGA section 3(a), simply by transiting the natural gas or LNG through a FTA country en route to a non-FTA country. We do not believe Congress intended the dual-track scheme it created in the [Natural Gas Act] to be so easily evaded.


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