By October 20, 2015 0 Comments Read More →

Emera CNG approved to export compressed natural gas from Florida

Emera CNG

Compressed Natural Gas

The US Energy Department announced today that it has issued a final authorization to Emera CNG, LLC (Emera) to export domestically produced compressed natural gas (CNG) to countries that do not have a Free Trade Agreement (FTA) with the United States.

Emera is authorized to export CNG up to the equivalent of 0.008 billion cubic feet per day (Bcf/d) of natural gas for a period of 20 years from Emera’s proposed facility at the Port of Palm Beach, Florida, via trailers, tank containers, and ocean-going carriers to any non-FTA country not prohibited by U.S. law or policy.

Halifax-based Emera CNG recently completed several financings, including a 1.9 billion bought deal offering of convertible debentures and a $285 million over-allotment on that deal. Emera raised the money to buy TECO Energy Inc.(NYSE: TE), an S&P 500 energy-related company whose three utilities serve a total of 1.6 million customers in Florida and New Mexico.

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 average production rate of 78.92 Bcf/d in 2015.

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 says it conducted an extensive, careful review of the Emera CNG application.  Among other factors, the Department considered the economic, energy security, and environmental impacts and determined that exports at a rate of up to 0.008 Bcf/d for a period of 20 years was not inconsistent with the public interest.

 

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