Sources say that Trump will end the need to renew some LNG export permits

According to two sources familiar with the plan, Donald Trump, the U.S. president-elect will eliminate the requirement that some LNG producers renew their export permits.

Sources said that Trump would likely include this change in his executive order on LNG, which he will issue during his first day of office. Trump, who will take office on Monday has stated that he will issue an executive order on LNG on his first day in office. This would allow him to end the pause in approvals of new LNG projects put in place by outgoing president Joe Biden in January last.

Many companies are permitted to export LNG into countries that do not have free trade agreements with America and who have yet to construct their plants.

Companies run the risk that their permits will not be renewed, which could endanger projects. The companies that are developing LNG plants can use the export permits and preliminary deals with buyers to secure financing.

The U.S. Department of Energy refused to extend export permits to LNG developers who failed to meet an agreed-upon construction deadline in April 2023.

The DOE has said that it will

No longer consider

New applications for extension of seven-year permits are not allowed unless the companies can prove that they have started building an LNG export facility or faced extenuating circumstance.

After Energy Transfer filed for a pipeline, the decision was made.

Three-year extension

The permit is for the construction of an LNG export facility at Lake Charles, Louisiana.

The company claimed it wanted a second contract extension

A change in the design of this project included a significant carbon sequestration and capture component.

(source: Reuters)