Sapphire secures DOE LNG export permit

The small-scale, multi-contract authorization is valid until December 31, 2050.

Sapphire said in a statement this “pivotal” approval allows the company to export up to 51.75 billion cubic feet of Bcf, the equivalent of 626 million gallons or 1.7 million gallons per day of LNG annually to free trade agreement (FTA) and non-free trade agreement (non-FTA) countries.

Traditionally, LNG cargo must be offloaded at onshore tanks and then transported to its final destination by truck.

However, Sapphire’s use of ISO containers allows the company to bypass this complex process.

The company said LNG will be shipped in containers like other cargo, enabling Sapphire to deliver energy “faster and more efficiently” to countries in need.

“Despite a moratorium on large-scale natural gas exports impacting the US natural gas industry, Sapphire is able to operate under a small-scale exemption in current regulations,” it said.

Sapphire said this exemption opens the door for Texas-based natural gas production to reach global markets, ensuring the industry continues to “thrive amid export restrictions.”

16 small-scale facilities

On June 10, Sapphire filed an application with the DOE seeking long-term, multi-contract authorization to export domestically produced LNG.

DOE said in an October 21 filing that Sapphire is authorized to export LNG obtained from any of the 16 facilities listed in the application.

The facilities include three in Florida owned by JAX LNG, Eagle LNG Partners, and New Fortress Energy, whileoOthers are located in Alabama, Texas, Louisiana, etc.

DOE said Sapphire will export these LNG volumes from the Port of Miami via ISO containers mounted on a chassis and transported on a barge to the Bahamas, other islands in the Caribbean, as well as other countries.

Sapphire said that the source of the proposed exports is expected to be the natural gas supply produced throughout the United States and delivered to the facilities through the integrated natural gas pipeline grid.