Washington (Platts)--26Mar2012/231 pm EDT/1831 GMT

The US Department of Energy has delayed until late summer the release of a study that will help it decide whether to allow more companies to export US natural gas as LNG, a department spokesman said Monday.

A growing number of companies have applied to export US LNG to higher-priced markets in Europe and Asia. While DOE must quickly approve exports to countries that have free trade agreements with the US, the department may limit or block non-FTA exports if it finds they are not in the public interest.

The department has approved just one terminal -- Cheniere Energy's Sabine Pass import facility in Louisiana -- to export LNG to non-FTA countries. The department is now waiting to approve more non-FTA exports until it has the results of two studies on LNG exports.

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The Energy Information Administration conducted the first study, released in January, that found that significant levels of LNG exports could lead to a spike in US wellhead gas prices.

The second study, which is being conducted by an independent contractor, will use EIA's price findings to assess the broader economic effects of increased gas exports.

The second study was originally slated for release this spring, but DOE spokesman Bill Gibbons said in a statement Monday that the release date now has been delayed until late summer.

"The department will then take time to review the results and develop a path forward for making public interest determinations for the pending export applications," Gibbons said, adding, "No timeline has been set for making those determinations."

--Kate Winston, catherine_winston@platts.com

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