Small Scale Natural Gas Export Opportunity

Regulation

The Department of Energy (DOE) revised regulations today effective August 24th, to expedite receipt and processing of applications and approvals for limited volume exports of natural gas, to countries not already obliged by another trade agreement or regulation.  An emerging market was recognized in its export of small volumes of natural gas from the United States to countries not prohibited by standing agreements.  This market sees exports of natural gas to non-sanctioned and non-Free Trade Agreement (FTA) countries, the areas of the largest importers, include: The Caribbean, Central America, and South America.

Explanation

The goal as stated by the DOE is to encourage growth and ethics in this emerging market and hopes that it may contribute to a more competitive industry which currently surrounds natural gas.  The DOE has acknowledged that this industry does serve a need for countries with smaller demand that typicaly sees difficulty from larger volume exporters not being able to supply.
The applications must be complete and export to countries not already obliged by a FTA or other regulation, while able to satisfy both of these additional requirements
  • The application must propose a volume to export no more than 51.75 Bcf a year
  • The application must be eligible for exclusion from the National Environmental Policy Act of 1969 (NEPA) and other relevant regulations under the DOE. Meaning the application must not require an EIS or EA.

Non-Eligible Destination FTA Countries

Importing to Countries with a Free Trade Agreement are not eligible for this exclusion, as the FTA will determine the conditions of export from the U.S.  According to trade.gov, The United States has Free Trade Agreements with:
  • Australia
  • Bahrain
  • Canada (NAFTA)
  • Chile
  • Colombia
  • Costa Rica, (D.R.-CAFTA)
  • Dominican Republic, (D.R.-CAFTA)
  • El Salvador (D.R.-CAFTA)
  • Guatemala (D.R.-CAFTA)
  • Honduras (D.R.-CAFTA)
  • Nicaragua (D.R.-CAFTA)
  • Israel
  • Jordan
  • Korea
  • Morocco
  • Mexico (NAFTA)
  • Oman
  • Panama
  • Peru
  • Singapore
Free trade agreements are the best solution to opening up markets to United States Exporters, while also enhancing the control by law in the partner country.  Free Trade Agreements have a power to reducing trade barriers by outlining procedures and protections to encourage and support trade between partnering geographically challenged markets.

Non-Eligible Destinations Due to Sanctions

The Bureau of Industry and Security (BIS) as well as The Office of Foreign Assets Control (OFAC) have issued sanctions against:
  • Cuba
  • Iran
  • North Korea
  • Sudan
  • Syria

Liability

Exporters bare full responsibility to comply with all applicable regulatory requirements.  Please conduct further research to comply with all applicable international, federal, state, and local laws before commencing any business operations.

Disclaimer

Regulation Regular comments on actions of government agencies with an explanation and examination for stratagem or opportunity.

In an effort to find opportunity for entrepreneurial and investment efforts, I have begun to monitor more actions from governmental agencies regarding regulations.  This segment aims to highlight interesting developments in the business environment including competitors, regulations, or interesting occurrences.

THIS IS NOT LEGAL ADVICE.  THIS IS COMMENTARY ON REGULATION.

Regulations can be a source of opportunity, as they make a major part in the determination of barriers to entry.  An industry or practice is difficult to enter if there is a significant amount of regulative procedures and requirements, versus when restrictions are removed an opportunity may be presented.  In this way we are doing our small part to encourage an informed people.

We start from modest beginnings but continue to identify, develop, and research opportunity and strategy for entrepreneurs, to better develop business ideas.

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