Applications for liquefied natural gas (LNG) exports to countries that do not have a free trade agreement with the U.S. are currently only denied if deemed not in the “public interest” by the Department of Energy. This vague definer has raised calls from both supporters and opponents of LNG exports for added clarity in the process. Good policies must offer greater certainty by reflecting the cost of constructing export facilities and be regularly updated to follow changes in the gas market.
In this natural gas briefing document, the second in a series of briefings by the Energy Security Initiative at Brookings (ESI) on developments in the natural gas market, the authors offer policy recommendations for the Department of Energy to reform the existing rules surrounding the LNG export approval process.
We are all in new territory given the U.S. abdication of leadership on trade liberalization and the Trump's administration [sic] hostility to the multilateral trading system. In rescuing the TPP and finalizing the Free Trade Agreement with the European Union, Japan has delivered mega trade agreements that carry a very different meaning from when the negotiations started. They make a stand in favor of open markets, tariff elimination exercises, and codification of rules at a time when there is grave concern over the direction of the two largest economies in the world.