Carib Energy, a subsidiary of Jacksonville, Fla.-based Crowley Maritime, has been granted a 20-year, small-scale U.S. Department of Energy (DOE) export license for the supply, transportation and distribution of U.S.-sourced liquefied natural gas (LNG) into Non-Free Trade Agreement (NTFA) countries in the Caribbean, Central and South America. The licensing permits Crowley to now export 14.6 billion cu. ft. (BCF) 0.04bcf/d of LNG – roughly the equivalent of 480,000 gals. – per day via 10,700 gals. ISO tanks to these regions.
In addition to supplying NFTA countries, Crowley will also continue to supply Free Trade Agreement (FTA) countries with the clean, economical fuel source. Crowley’s Carib Energy was the first to have been granted a 25-year, small-scale license for the transportation into these FTA countries, a clearance that permits Crowley to transport 11.53 billion cu. ft. (BCF) 0.03bcf/d or 360,000 gals. - per day of U.S.-sourced LNG into FTA markets in the Caribbean and Central and South America – locations where LNG is an attractive commodity thanks to its low price point in the face of growing power supply costs.
“The challenge for any company in the business of moving LNG in ISO tanks is the flange-to-flange logistics of inland, ocean and island movements in a timely manner to keep the flow of LNG constant to the customer,” said Crowley Vice President Greg Buffington. “Crowley not only has the expertise but also the available assets to make this a successful business, while presenting savings and a greener energy alternative for customers around the world.”
Crowley recently announced the signing of a multi-year contract with Coca-Cola Bottlers of Puerto Rico to supply containerized, U.S.-sourced LNG to two of the manufacturer's plants in Cayey and Cidra, Puerto Rico. Carib Energy is also in negotiations with several other potential industrial customers that will soon convert to LNG.
The Energy Department also issued final authorization to Cameron LNG to export LNG up to the equivalent of 1.7 Bcf/d of natural gas for a period of 20 years. Following the recent announcement of the procedural change, the Department evaluated the Carib and Cameron applications after they completed the environmental review required by the National Environmental Policy Act.
The development of U.S. natural gas resources is having a transformative impact on the U.S. energy landscape, helping to improve our energy security while spurring economic development and job creation around the country. This increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a record production rate of 74.56 Bcf/d in 2014.
Federal law generally requires approval of natural gas exports to countries that have an FTA with the United States. For countries that do not have an FTA with the United States, the Natural Gas Act directs the Department of Energy to grant export authorizations unless the Department finds that the proposed exports “will not be consistent with the public interest.”
The Energy Department conducted an extensive, careful review of the Cameron LNG and Carib Energy applications. Among other factors, the department considered the economic, energy security, and environmental impacts and determined that exports at a rate of up to 1.7 Bcf/d and 0.04 Bcf/d for a period of 20 years was not inconsistent with the public interest.