S. 3035: Natural Gas Export Expansion Act

The Natural Gas Export Expansion Act is a legislative proposal aimed at modifying existing laws related to the export of natural gas. Here’s a summary of its main points:

Purpose of the Bill

The primary aim of the bill is to facilitate the export of natural gas from the United States. It is based on the belief that expanding these exports will:

• Encourage more investment in domestic natural gas production.
• Lead to job creation and support economic growth.

Key Amendments to the Natural Gas Act

The bill proposes amendments to Section 3(c) of the Natural Gas Act, which outlines the approval process for natural gas exports. The key changes are as follows:

Expanded Export Permissions

The bill allows for natural gas exports to any nation that is not specifically excluded, broadening the range of countries that the U.S. can export natural gas to.

Expedited Application Process

The act introduces an expedited application and approval process for natural gas exports. This means that exporters can get quicker approvals for their export applications, promoting faster market access.

Exclusions

While the bill expands export permissions, there are certain exclusions:

• Countries currently under U.S. sanctions are not eligible for the expedited approval process.
• The President or Congress may designate additional countries to be excluded from the expedited process for national security reasons.

Special Provisions for Canada and Mexico

The bill clarifies that no specific order is required to export natural gas to or import it from Canada or Mexico, simplifying trade relations with these neighboring countries.

Overall Impact

This legislation is intended to enhance U.S. natural gas exports, support economic development, and create jobs by streamlining the approval process for these exports, while ensuring that national security considerations are taken into account.

Relevant Companies

• PCX - Peabody Energy Corporation: As a major coal producer, changes in natural gas export regulations may impact energy market dynamics and competition.
• DUK - Duke Energy Corporation: As a large utility company, Duke's energy sourcing and pricing strategies may be affected by increased natural gas exports and market adjustments.
• XOM - Exxon Mobil Corporation: As one of the largest producers of natural gas, Exxon may benefit from the expanded market for U.S. natural gas exports.
• CVX - Chevron Corporation: Similar to Exxon, Chevron stands to gain from greater export opportunities in the natural gas sector.