Greetings from the Center for Liquefied Natural Gas (CLNG)

Hello,

Welcome to the Fall 2011 edition of the LNG Industry Insider, a quarterly media newsletter brought to you by the Center for Liquefied Natural Gas (CLNG). As the U.S. LNG landscape continuously changes, we hope this newsletter will serve as a valuable resource for the media to stay informed about the trends, pivotal developments and milestones of the LNG industry.

In this issue we'll learn more about Dominion Cove Point's application to export LNG, the 40th anniversary celebration for America's longest-running LNG import terminal and how much America's restaurant industry relies on natural gas.

For more information about this newsletter or LNG, please visit www.lngfacts.org or call us at (202) 962-4752.

Sincerely,
Bill Cooper
President, Center for Liquefied Natural Gas

US LNG Exports: A Brief Overview of the DOE Permitting Process

By Bill Cooper, President, Center for Liquefied Natural Gas

The Department of Energy (DOE), acting under the authority of the Natural Gas Act, considers several issues, including the domestic need, prior to granting a license for the proposed export of natural gas.

When considering a license for the export of natural gas, DOE's statutory authority is the Natural Gas Act¹, which requires the agency to make a determination concerning the "public interest," a term that is not defined in the statute.

If an applicant seeks permission to export natural gas to countries in which the United States has a free trade agreement that requires "national treatment for trade in natural gas", the license will be issued "without modification or delay," because such an application will "be deemed to be consistent with the public interest." [MORE]

¹ The Natural Gas Act also governs the imports of natural gas, but this article only focuses on exports.

LNG Project Development Update

Dominion Seeks to Export LNG from Cove Point

Dominion has applied and received approval from the Department of Energy to export LNG to free trade agreement (FTA) countries from its LNG terminal in Cove Point, Md. The company's application to also export to non-FTA countries (any country in which the U.S. does not prohibit trade) is still pending.

According to Thomas F. Farrell II, Dominion's chairman, president and chief executive officer, "Dominion Cove Point has connections to several interstate pipelines and is well-positioned to provide export customers access to an abundant and diverse domestic gas supply. It is in our nation's best interests to develop our natural resources responsibly and reliably. In the process, we will be able to improve the nation's balance of trade."

Dominion also says LNG exports could provide an enormous economic stimulus, provide energy price stability, create thousands of new jobs, increase tax revenues, and improve the nation's balance of trade. [MORE]

New "LNG: The Facts" Video Answers Top Five Questions About LNG

The Center for Liquefied Natural Gas (CLNG) has released a new video entitled: LNG: The Facts. The video answers and explains the public's top five questions about LNG.

This informative and educational video clearly explains what liquefied natural gas is, its safety features in use and shipping, its reliability, and why it is needed in America.

"In our ongoing efforts to enhance public education and understanding about LNG, CLNG has created this video to answer and clearly explain the most pressing questions about LNG – answered by the people who know it best – from an LNG ship captain to a President and COO of an LNG import terminal, this video will give people a much clearer picture of what LNG is all about," said Bill Cooper, president of the Center for Liquefied Natural Gas. [MORE]

Distrigas Celebrates 40 Years

In November 2011, America's longest-running liquefied natural gas import terminal will celebrate its 40th year of continuous operation. Distrigas of Massachusetts, located near Boston in Everett, Mass., opened for business in November 1971. It was during that month that its first ever LNG shipment arrived aboard the Descartes.

Since 1971, LNG deliveries to the terminal have accounted for more than one-third of all LNG imported into the U.S. Today Distrigas satisfies 20 percent of the annual gas demand of New England – up to 40 percent on a cold winter day.

In December 2010, the 1,000th cargo was delivered to the Everett Marine Terminal.

To commemorate their 40th anniversary, Distrigas distributed 1,000 back-to-school gift cards to Everett families in need, funded a Summer Jobs Program for city youth, made a donation to the Boys & Girls Club, and brought Hall of Famer and former Red Sox left fielder Jim Rice to a city festival to sign autographs.

Bill Cooper Speaks at the North America Gas Summit

The Center for LNG's president, Bill Cooper, spoke at the inaugural North America Gas Summit, held from Oct. 3-5 in Washington, D.C. The summit addressed issues affecting the entire natural gas supply chain including supply, demand and natural gas as a part of the overall energy mix. Various panels also addressed the future of natural gas, including the potential for LNG exports from North America.

Bill gave remarks for the Oct. 4 panel entitled "LNG: An Enabler for North America Realizing Its Export Potential – What Does the Future Hold?" In particular, he spoke about the Department of Energy's permitting process for LNG exports. He discussed the evolution of DOE's considerations of export applications from Kenai, AL, to its most recent decision concerning Sabine Pass, LA, observing that DOE followed its precedents all the while being sensitive to newly raised concerns. Bill concluded that DOE's regulatory process is working well.

Sempra Hosts Annual LNG Shipping Conference

Sempra LNG hosted this year's annual Groupe International des Importateurs de Gaz Naturel Liquéfié (GIIGNL) general assembly Sept. 25-28 in San Diego. GIIGNL, also known as the International Group of LNG Importers, is an LNG industry organization focused on sharing shipping technology, operations and best practices expertise.

The GIIGNL general assembly provided members the opportunity to exchange information on a number of pertinent LNG import topics including terminal operation, safety, reliability and efficiency. Approximately 130 delegates attended the meeting, representing the worldwide industry from the Americas, Europe and Asia.

LNG "Cool" Fact

Did You Know?

78 Percent of America's Restaurants Rely on Natural Gas

Did you know that 97 percent of chefs prefer cooking with natural gas stoves? Why? Because the pinpoint control of cooking temperatures is better for even baking and cooking. Cooking with natural gas keeps customers coming back, restaurant workers on the job, and restaurants in business. In fact, natural gas is used in 78 percent of America's restaurants to heat the oven, fryer, grill, and cooktop. Natural gas also powers the dishwashers, refrigerators, freezers, lighting, hot water heaters, and climate controls. (Source: American Petroleum Institute: "Life is Better with Natural Gas.") Just another reason why liquefied natural gas (LNG) is necessary for ensuring a reliable supply of natural gas wherever and whenever it is needed.