Importing LNG into the US? A Few Pointers

by David Levin and Ariel Ezrahi, in London, and David Schumacher, in Houston

Companies planning to import liquefied natural gas into the United States should consider in advance the various US corporate, legal and regulatory risks and liabilities that may arise in connection with this business.

These risks are manageable for any sophisticated company. There may be multiple solutions to some of the issues, depending on the company’s business model.What is important is that care be taken in considering the issues and thought be given to the implications of selecting particular approaches.

There are advantages to the importer in conducting the business through a separate subsidiary. Such a structure may enable the company to allocate risks, and thus liabilities, among separate entities. For example, one "importer" entity can be established to purchase LNG receiving terminal capacity, import the LNG into the US, and own the LNG while it is held in storage at the LNG