Page 7 - NorthAmOil Week 44 2021

NorthAmOil COMMENTARY NorthAmOil

Eagle LNG Partners is
already exporting LNG
to several Caribbean
island states from its
terminal in Jacksonville,
Florida.

LNG more accessible and cost-effective to our faction includes a substantial number of envi-
partners throughout Latin America and the ronmentally minded legislators who would
Caribbean ... is good for the United States.” likely oppose initiatives that might benefit the
Neither Rubio nor Scott mentioned any spe- US fossil fuel industry, and their sentiments
cific LNG initiatives, but it is worth noting that would likely carry the day if the measure were
Texas-based Eagle LNG Partners is already subjected to a vote in the House. Likewise, Pres-
exporting the fuel to several Caribbean island ident Joe Biden, who made a point of signing
states from its terminal in Jacksonville, Flor- an executive order blocking the construction of
ida. Earlier this year, for example, the company the Keystone XL oil pipeline on his first day in
added Antigua and Barbuda to the roster of its the White House, cannot be expected to favour
Caribbean customers, teaming up with Antigua such a bill.
Power Co. (APC) and the Antigua Public Util- Another mark against the Small-Scale LNG
ities Authority (APUA) for an LNG-to-power Access Act is its obvious tilt against Venezuela,
project. given that the Biden administration appears to
The three companies broke ground on a new be less committed than Trump’s team to main-
thermal power plant (TPP) that will use regas- taining tight sanctions on that country and its
ified LNG as a source of fuel in July. The TPP oil industry. Both Scott and Rubio stressed that
is being built in Crabbs, a town on the Crabbs point on November 3, with the former saying
Peninsula on Antigua’s northern coast. The area that the US should work to reduce the consump-
is already home to a 50.9-MW TPP that burns tion of Venezuelan fuel at TPPs in Latin Amer- The Small-Scale
petroleum products, but the new plant will be ican and the Caribbean. Likewise, the latter
the first gas-fired facility of its kind on the island. commented: “Importantly, the bill would also LNG Access Act
Eagle LNG Partners is not the only US firm ensure that bad actors, including the criminal is not likely to
exploring opportunities in the region. Okra regimes in Venezuela and Cuba, do not bene-
Energy, based in Washington State, has been fit from expedited access to American energy become part
making small-scale LNG shipments to Peru exports.”
for several years, and in July 2020 its subsidiary Overall, then, the re-introduction of the of the US legal
Okra Energy Alabama (USA) signed a five-year Small-Scale LNG Access Act appears to be
supply agreement with Énestas Energy & Gas, a more politically than economically motivated. regime this time
privately-owned Mexican firm. This move is likely to be viewed positively by US around.
voters who already support the bill’s sponsors,
The reasons for failure and it may even draw positive attention from
Notwithstanding these potential benefits, the undecided voters with a positive view of the gas
Small-Scale LNG Access Act is not likely to sector. But it is not likely to pass into law under
become part of the US legal regime this time current conditions, with the Democrats holding
around. the presidency and a majority in the House.
Even if the bill is approved by the Energy As such, the matter of small-scale LNG export
and Natural Resources Committee and passes permits will remain in the hands of the DOE,
in the Senate, it will probably fail to clear the which is still operating under the rule adopted
House of Representatives, where the Demo- in 2018. It remains to be seen whether the Biden
cratic faction holds the majority of seats. That administration will let that rule stand.™

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