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Yesterday, the Department of Energy (DOE) announced that it will allow LNG Development Co. (ticker: LLC) to export LNG from a terminal in Warrenton, Oregon, to countries without a Free Trade Agreement. The terminal is the first of its kind to be approved on the West Coast.  The terminal is still subject to environmental review and final regulatory approval from the Federal Energy Regulatory Commission, but the U.S. should be able to export to any country the DOE finds “consistent with the public interest.”

Oregon LNG plans to begin construction late next year for completion in early 2019. There will be two 160 Mcf storage tanks, and the port will be able to accept ships as large as 267 Mcf  Q-Max vessels. They also hope to have an 85-mile pipeline from the terminal to the Williams Northwest Pipeline in Woodland, Wash.

The American Petroleum Institute commended the approval and urged Congress to accept more of the applicants. API’s Upstream Director Erik Milito said, “As the world’s largest producer of natural gas, we should act now to bolster our allies and send a signal to global markets that America is ready to compete.”

Oregon’s terminal is the eighth of forty applicants to pass DOE regulations despite the DOE’s proposed 45-day limit for reviewing and commenting on applications, which was made on May 19, 2014. To approve the terminal, the DOE considered energy security, environmental impacts, economics, and received almost 200,000 public comments about the impacts of LNG.

According to Energy.gov, “the facility is conditionally authorized to export at a rate of up to the equivalent of 1.25 Bcf/d of natural gas, for a period of 20 years.” However, most of the LNG being exported from this facility will be from Canada, even though the EIA forecasts that domestic natural gas production in 2014 will be a record rate of 73.29 Bcf/d.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.