5. LNG:

Wyden asks DOE to explain export decision plans

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Sen. Ron Wyden (D-Ore.) today asked Energy Secretary Steven Chu to explain what criteria will be used in approving proposed exports of liquefied natural gas and whether the economy, emissions and prices -- both of natural gas and of electricity -- will be considered.

Wyden, a likely candidate to chair the Senate Energy and Natural Resources Committee if Democrats maintain control of the Senate, called on Chu to outline what factors will be used to determine whether applications to export LNG to countries without free-trade agreements with the United States are in the public interest.

"I ask that you explain how DOE will establish the actual decision-making criteria to be used in making the required export determinations -- for pending and future applications -- and the manner in which these criteria will be promulgated," Wyden said.

The senator noted that the Department of Energy has received applications from companies to export more than 21 billion cubic feet of LNG a day -- more than a quarter of U.S. consumption -- to countries that don't have such agreements, and an additional 27 billion cubic feet daily to countries that do have free-trade deals. That amount "far exceeds" the 2 billion cubic feet per day analyzed in the Sabine Pass decision, he said, referring to a DOE decision in August that issued a license to a subsidiary of Cheniere Energy Inc. to export LNG from a proposed export terminal in Cameron Parish, La., that would be created by the proposed redevelopment of the Sabine Pass import facility.

The oil and gas industry and utilities recently launched a campaign urging Congress to speed up DOE's release of a macroeconomic study, which is holding up the permitting of LNG export applications. DOE has said it will release the study, which will assess where the public interest in natural gas exports lies, near the end of the year.

Wyden acknowledged the DOE study is pending but said Chu needs to clarify whether domestic gas supply and prices, emissions, electricity prices, employment, manufacturing, and economic growth will be considered when approving and revoking export licenses going forward.