Export Rules

Natural gas producers are probably turning green with envy: Processed condensate exports out of the US Gulf are strong and getting stronger. Since the Department of Commerce threw the doors open to the export of lightly processed condensate, new loading points have emerged, new target markets have been found, and more companies have become involved. Today we describe how attention is now turning from regulatory and logistical issues to the challenge of finding buyers.

Today the US is producing more natural gas, natural gas liquids (NGLs) and some grades of crude oil hydrocarbons than we can use.  Consequently we’ve shifted from an overall position of hydrocarbon shortage to one of surplus. But only some of those surplus products can be exported. That’s because of rules put on the books during the decades of shortage that restrict or ban the export of hydrocarbons. At least six such “Molecule Laws” are now variously impacting international market transactions involving US produced hydrocarbons. Today we describe the export rules affecting NGLs.