With US lawmakers headed home for the holidays, legislation aimed at speeding up the export approvals process will have to wait until after the new, Republican-controlled Congress meets in early January. The underlying goal is to boost LNG exports, although the recent oil price crash may sap some of the momentum, since'it reduces hub-linked US LNG's price advantage over traditional oil-linked LNG (WGI Dec. 17' 14). At this point, however, the precise form of any legislation is unclear and it remains to be seen if it will be burdened by more politically controversial amendments (WGINov.12'14). Right now, companies essentially face a two-step approvals process. The Department of Energy (DOE) must indicate that LNG exports are in the "public interest" and the Federal Energy Regulatory Commission (Fere) must approve the siting and construction of the liquefaction plant. For countries with which the US has a free trade agreement (FTA), DOE approval is essentially automatic. But there is no established timeline for countries without an FTA — a group that includes gas-hungry Japan, China, India and the whole of Europe — leaving industry complaining that the lengthy process injects uncertainty into multibillion-dollar developments, complicating financing.
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