However, technology enhancements improved the extraction of natural  gas from shale formations and resulted in a dramatic increase in domestic  natural gas production. DOE started to receive applications to export LNG  in 2010 and, since then, it has approved 37 of 42 applications to export  LNG to FTA countries. As previously mentioned, this report  discusses DOE’s process to review applications to export to non-FTA  countries. FERC’s Responsibilities

In keeping with its obligation to authorize LNG facility siting and  construction under the NGA, FERC reviews applications to construct and  operate LNG export facilities. FERC’s review is considered a federal  action and subject to the National Environmental Policy Act (NEPA). DOE Has Approved 9 Applications to Export LNG through a Review Process That Considers a Range of Factors to Determine Whether Approval Is in the Public Interest

Since 2010, DOE has granted final approval to 3 applications and  conditional approval to 6 others. In  August 2011, after DOE conditionally approved exports from Sabine  Pass, DOE commissioned a study of the cumulative effects of additional  LNG exports on the economy and the public interest.approve any conditional applications during the 16-month period of the   DOE did not  study. The study was completed in December 2012. Since then, DOE  has conditionally approved 7 applications, including the Cameron LNG  application that it granted final approval in September 2014 (See fig. DOE Reviews Each Application Separately and Considers a Range of Factors to Determine if Approval Is in the Public Interest

According to DOE, when determining whether approval of an application  is in the public interest, DOE focuses on (1) the domestic need for natural  gas, (2) whether the proposed export threatens the security of domestic  natural gas supplies, and (3) whether the arrangement is consistent with  DOE’s policy of promoting market competition along with other factors  bearing on the public interest, such as environmental concerns. FERC Has Approved 3 Facility Applications and Is Reviewing 14 Others Using a Technically Complex Process That Involves Other Agencies

Since 2010, FERC approved 3 facility applications, including 2 in 2014,  and is currently reviewing 14 applications. FERC Approved 3 Facility Applications and Is Reviewing 14 Applications

FERC approved applications to construct and operate the Sabine Pass  LNG export facility in April 2012, the Cameron facility in June 2014, and  the Freeport facility in July 2014. As of late August 2014, FERC was  reviewing 14 applications (See fig. Pre-filing. After FERC approves a  project but before an applicant can start construction, the applicant must  develop a plan describing how it will meet any conditions and mitigation  measures identified in FERC’s approval. FERC’s Review Process Involves Other Federal, State, and Local Agencies

As the lead agency responsible for the environmental and safety review  of LNG export facilities under NEPA, FERC works with federal, state, and  local agencies to develop the NEPA document. In addition to federal permits and consultations, applicants may also be  required to obtain other permits under state and local law. Table 1 lists (1) the names of applicants that submitted requests to FERC  to construct liquefied natural gas (LNG) export facilities, (2) the names of  applicants that submitted requests to DOE to export LNG from those  facilities, and (3) the name GAO used to refer to these applications.
Why GAO Did This Study

Technological advances in hydraulic fracturing and horizontal drilling have resulted in a dramatic increase in the amount of natural gas that can be produced domestically. DOE is responsible for reviewing applications to export LNG—natural gas cooled to a liquid state for transport—and, under the Natural Gas Act, must approve an application unless it finds that approval is not consistent with the public interest. Since 2010, DOE has received 35 applications to export LNG that must address the public interest question. In addition, under NEPA, FERC is required to assess how LNG export facilities may affect the environment and is responsible for granting approval to build and operate export facilities. Since 2010, FERC has received 17 applications to construct export facilities.
GAO was asked to report on the federal process for reviewing applications to export LNG. This report describes (1) the status of applications to export LNG and DOE's process to review them and (2) the status of applications to build LNG export facilities and FERC's process to review them.
GAO reviewed laws, regulations, and guidance; examined export approvals; visited LNG facilities; and interviewed federal and state agency officials and industry representatives, including LNG export permit applicants.
GAO is not making any recommendations in this report.

What GAO Found

Since 2010, of 35 applications it has received that require a public interest review, the Department of Energy (DOE) has approved 3 applications to export liquefied natural gas (LNG) and 6 applications are conditionally approved with final approval contingent on the Federal Energy Regulatory Commission's (FERC) issuance of a satisfactory environmental review of the export facility. DOE considers a range of factors to determine whether each application is in the public interest. After the first application was conditionally approved in 2011, DOE commissioned a study to help it determine whether additional LNG exports were in the public interest. Since the 16-month study was published in December 2012, DOE issued 7 conditional approvals (one of which became final) and 1 other final approval (see fig. below). In August 2014, DOE suspended its practice of issuing conditional approvals; instead, DOE will review applications after FERC completes its environmental review.
DOE LNG Export Application Status
Since 2010, FERC has approved 3 LNG export facilities for construction and operation, including 2 facilities in 2014, and is reviewing 14 applications (see fig. below). FERC's review process is, among other things, designed to fulfill its responsibilities under the National Environmental Policy Act (NEPA). Before submitting an application to FERC, applicants must enter an initial stage called pre-filing to identify and resolve potential issues during the earliest stages of a project. Of the 14 applications, 5 are in the pre-filing stage at FERC and not shown in the figure below. FERC conducts an environmental and safety review with input from other federal, state and local agencies.
FERC LNG Export Facility Application Status