UNITED STATES OF AMERICA
DEPARTMENT
OF ENERGY
OFFICE OF FOSSIL ENERGY
_______________________________________
)
DELFIN LNG LLC
)
FE DOCKET NO. 13-147-LNG
_______________________________________ )
OPINION
AND ORDER GRANTING LONG-TERM, MULTI-CONTRACT
AUTHORIZATION TO EXPORT LIQUEFIED
NATURAL GAS
BY VESSEL FROM A PROPOSED FLOATING LIQUEFACTION
PROJECT
AND DEEPWATER PORT 30 MILES OFFSHORE OF LOUISIANA
TO NON-FREE TRADE AGREEMENT NATIONS
DOE/FE ORDER NO. 4028
JUNE 1, 2017
i
TABLE OF CONTENTS
I.
INTRODUCTION ................................................................................................................. 1
II.
SUMMARY OF FINDINGS AND CONCLUSIONS ........................................................ 10
III.
PUBLIC INTEREST STANDARD .................................................................................... 10
IV.
DESCRIPTION OF REQUEST .......................................................................................... 13
A.
Description of Applicant ............................................................................................... 14
B.
Proposed Liquefaction Facility ..................................................................................... 14
C.
Procedural History ........................................................................................................ 16
D.
Business Model ............................................................................................................. 17
E.
Source of Natural Gas ................................................................................................... 17
V.
APPLICANT’S PUBLIC INTEREST ANALYSIS ........................................................... 17
A.
Unique Benefits of the Liquefaction Facility ................................................................ 18
B.
Adequacy of Domestic Supply ..................................................................................... 19
C.
Impact on Domestic Natural Gas Prices ....................................................................... 20
D.
Domestic Benefits of LNG Exports .............................................................................. 21
VI.
CURRENT PROCEEDING BEFORE DOE/FE ................................................................ 22
A.
Overview ....................................................................................................................... 22
B.
API’s Motion to Intervene and Comments ................................................................... 23
C.
V4EI’s Motion to Intervene and Protest ....................................................................... 25
D.
APGA’s Motion to Intervene and Protest ..................................................................... 29
E.
Sierra Club’s Motion
to Intervene, Protest, and Comments ......................................... 32
1.
Alleged Scope of Environmental Impact Statement .............................................. 33
2.
Alleged Environmental Impacts from the Requested Authorization ..................... 35
3.
Alleged Economic Impacts from the Requested Authorization ............................ 42
F.
Delfin’s Consolidated Response ................................................................................... 44
G.
Sierra Club’s Renewed Motion to Reply and Reply ..................................................... 48
VII.
DOE/FE’S LNG EXPORT STUDIES ................................................................................ 49
A.
2012 LNG Export Study ............................................................................................... 49
B.
2014
EIA LNG Export Study,
Effect of Increased Levels of Liquefied Natural Gas
Exports on U.S. Energy Markets ................................................................................... 51
1.
Methodology .......................................................................................................... 51
2.
Scope of EIA Study ............................................................................................... 54
3.
Results of the 2014 EIA LNG Export Study ......................................................... 55
4.
Increased Natural Gas Prices ................................................................................. 56
5.
Increased Natural Gas Production and Supply ...................................................... 56
6.
Decreased Domestic Natural Gas Consumption.................................................... 56
7.
Energy-Related Carbon Dioxide Emissions .......................................................... 57
8.
Increased End-User Natural Gas and Electricity Delivered Prices ....................... 57
9.
Increased Gross Domestic Product ........................................................................ 58