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Two LNG export deals get U.S. nod

Countries with and without trade deals to get U.S. gas.

By Daniel J. Graeber

WASHINGTON, Aug. 1 (UPI) -- A facility along the Texas coast was cleared for exports of liquefied natural gas sourced from domestic supplies, the Federal Energy Regulatory Commission said.

Freeport LNG Development is to build a plant capable of processing 1.8 billion cubic feet of natural gas per day for exports to countries with and without free-trade agreements with the United States.

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The federal government must weigh trade to non-FTA countries against the public's interest. FERC in a statement Thursday said the Freeport LNG is required to adhere to more than 80 conditions to mitigate potential environmental impacts.

Supporters of LNG exports say it will be a source of domestic economic stimulus while enhancing U.S. leverage overseas. Opponents say it could lead to higher natural gas prices at home and lead to more hydraulic fracturing, a controversial drilling practice seen as harmful to the environment.

Conditional approval was given Thursday by the U.S. Energy Department to Oregon LNG to send LNG to non-FTA countries. The facility is conditionally authorized to export 1.25 billion cubic feet of natural gas per day for the next 20 years.

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When it weighed the application, the Energy Department said it took into consideration that most of the gas slated for export was coming from Canada, not the United States.

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