{
  "id": "R45006",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "R45006",
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      "source": "EveryCRSReport.com",
      "id": 575040,
      "date": "2017-11-01",
      "retrieved": "2017-11-02T13:20:49.401235",
      "title": "U.S. Liquefied Natural Gas (LNG) Exports: Prospects for the Caribbean",
      "summary": "With the advent of shale gas, the United States has transformed from a growing importer of natural gas to a burgeoning exporter. Exports by pipeline and ship have grown in the last couple of years. Liquefied natural gas (LNG) exports in 2013 were about 13 billion cubic feet (bcf), while in 2016 that figure jumped to almost 184 bcf. This increase can mostly be attributed to the opening of the Sabine Pass Liquefaction facility in Louisiana in February 2016.\nDespite the large volumes associated with the large-scale U.S. LNG export terminals, like Sabine Pass Liquefaction, there has also been a growing interest in small-scale LNG exports, mainly in cryogenic containers, to the Caribbean. Currently, the U.S. Department of Energy (DOE), which permits the export of natural gas as a commodity, has received 13 applications (four to export exclusively to free trade agreement (FTA) countries, two exclusively to non-FTA countries, and seven to either FTA or non-FTA countries) from companies seeking approval to export relatively small quantities of LNG primarily to destinations in the Caribbean, Central America, and South America. Of the 13, 11 applications are to export natural gas to FTA countries, and all have been approved. Seven of the nine applications to export to non-FTA countries have been approved, with two non-FTA applications under review. \nGlobally, large quantities of LNG liquefaction capacity are projected to come into operation within the next decade. Most of those projected projects, including those in the United States, are large-capacity facilities targeting the biggest LNG importers, like Japan and South Korea. However, there is a subset of the U.S. projects that are small-scale in capacity and targeting a small market\u2014the Caribbean. In 2016, three Caribbean countries\u2014Barbados (0.10 bcf), the Dominican Republic (41.32 bcf), and Jamaica (0.35 bcf)\u2014imported LNG. Puerto Rico was the largest importer of LNG in the region, with 57.56 bcf in 2016, predominantly on tankers. Barbados and Dominican Republic imported LNG from the United States. Puerto Rico, in part because of the Jones Act, is not able to import LNG on LNG tankers, but has imported LNG from the continental United States in cryogenic containers. The United States has not made an LNG tanker in almost 40 years.\nOn September 1, 2017, the DOE announced a proposed rule intended to speed up the approval process for small-scale exports of LNG from U.S. export facilities. To obtain the DOE expedited process for small-scale natural gas exports under the proposed rule, projects must meet two criteria: (1) the proposed facility cannot export more than 0.14 bcf per day (bcfd) or 51.10 bcf per year, and (2) the proposed facility must qualify for a categorical exclusion under DOE\u2019s National Environmental Policy Act (NEPA) regulations.\nOn October 18, 2017, S. 1981 was introduced to amend the Natural Gas Act (NGA) to provide an expedited approval process for small-scale LNG projects. Similar to the DOE\u2019s proposed rule, projects with a capacity of 0.14 bcfd or 51.1 bcf per year would be \u201cdeemed to be consistent with the public interest,\u201d and the permit would be \u201cgranted without modification or delay.\u201d",
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