Two U.S. projects to export liquified natural gas have been authorized, the U.S. Energy Department announced on Wednesday.
Cameron LNG and Carib Energy have been given final authorization for their projects to export domestically produced liquefied natural gas to countries that do not have a Free Trade Agreement with the United States, according to the announcement.
They are the first companies whose projects have gained permits from the U.S. Department of Energy to export gas since 2012.
The U.S. Department of Energy only grants export permits to countries that do not have a free trade agreement with the U.S. if the proposed exports are found to be consistent with public interest.
Cameron LNG's terminal in Cameron Parish, Louisiana is authorized to export up to some 1.7 billion cubic feet (51 million cubic meters) per day of natural gas for a period of 20 years, while Carib Energy's facility in Martin County, Florida is authorized to export up to some 0.04 billion cubic feet (1.2 million cubic meters) per day for a period of 20 years, says the announcement.
'The impact of economic, environmental and energy security among other factors have been considered and export quantities have been determined to be consistent with public interest,' the Department said.
'This landmark project will deliver natural gas to America's trading partners in Europe and Asia, while creating economic benefits for the U.S. for decades to come,' said Debra L. Reed, chairman and CEO of Sempra Energy, the parent company of Cameron LNG, who have an indirect 50.2 percent ownership interest in the project.
The total project cost in Cameron Parish, Louisiana is estimated at approximately $10 billion, including the contribution of the existing Cameron liquified natural gas facilities, the construction of new facilities and the financial cost, according to Cameron LNG on its website.
The domestic natural gas production is expected to reach a record production rate of 74.56 billion cubic feet (2237 million cubic meters) per day in 2014, according to the U.S. Energy Information Administration forecasting.
Since the 2008 shale gas boom, the U.S. economy enjoys lower domestic gas prices, while restrictions on gas exports continue and are dependent on gaining permits.
'The gas may be exported to any country in Central America, South America, or the Caribbean,' according to the final order which granted export authorization for Carib Energy, on the Department of Energy website.
By Ovunc Kutlu
Anadolu Agency