The US Department of Energy (DOE) has authorised Mexico's 1.4mn t/yr Altamira LNG export terminal to export cargoes produced from US gas to countries without a free trade agreement with the US (non-FTA authorisation).
This is the first new non-FTA permit issued to a LNG export terminal since President Joe Biden's administration announced a pause on issuing new non-FTA authorisations in January, as it planned to review the impact of a further build-out of LNG export capacity using US gas.
Altamira uses US feedgas, requiring permits from the DOE to export to countries that do and do not have a free trade agreement with the US. Altamira exported its first — partial — cargo last month, and already had a licence to export to countries with which the US has free trade agreements.
The terminal was under construction when Biden announced the pause on new licences. The DOE did not immediately respond to an Argus request for comment on new non-FTA authorisations.
Terminal operator New Fortress Energy said in February that it was unfazed by a lack of non-FTA authorisation, as it has enough supply commitments to countries that have FTAs with the US.
Altamira non-FTA authorisation to end in 2029
The DOE has granted Altamira LNG a five-year non-FTA authorisation — not the multi-decade authorisation New Fortress sought.
New Fortress wanted authorisation until 2051, but the DOE authorisation expires on 30 August 2029. The DOE said it will re-evaluate the export term when it has a "more complete record on which to evaluate" New Fortress' request. The re-evaluation would take place no sooner than 31 August 2026.
The DOE acknowledged that re-exporting gas from the US as LNG in Canada and Mexico raises concerns that do not hold for straight US exports of LNG — namely that the US' economy "does not receive a significant portion of the benefits DOE has recognised for LNG exported directly from the US, particularly with respect to the jobs and infrastructure investment associated with construction and operation of liquefaction facilities". The DOE also said "long-term consequences may arise from the fact that foreign infrastructure is not directly subject to US environmental laws", so it would "carefully consider the development of this market segment".
The DOE has now approved 46.45bn ft³/d of non-FTA exports from operational and planned projects in the US' lower 48 states, with a further 6.71bn ft³/d approved for non-FTA exports using US gas from terminals in Mexico and Canada.