Trump lifts the freeze on LNG export permits
The U.S. President Donald Trump ordered on Monday that the U.S. resume processing applications for export permits for new liquefied gas (LNG). This is part of his effort to increase U.S. energy production and to dismantle climate policies from his predecessor.
The Republican executive order was expected and reverses the pause that Joe Biden, former president, had put in place for permits to be issued for new projects in early 2024. Biden, a Democrat from the United States, halted the approvals to allow U.S. National Laboratories to study the economic and environmental effects of the booming industry.
The United States will be the largest LNG exporter in the world by 2023. The Energy Department said that exports could double by the end decade, and they may even double again if existing authorizations are followed.
The pause on new export permits has created uncertainty in a number of projects that are in the works. Many supply Asia and Europe.
Louisiana plants that are awaiting approval include Commonwealth LNG's Sabine Pass expansion, Venture Global's CP2, and Energy Transfer's Lake Charles Terminal. Sempra’s Port Arthur LNG project, in Texas, is awaiting approval for the second phase.
Trump's new energy team is tasked with carrying out his promise to increase U.S. output of oil and gas.
Chris Wright, the nominee to lead the Energy Department, which would issue LNG export permits, was the oilfield services company Liberty Energy. He told senators at his nomination hearing in the Senate last week that he prioritized expanding domestic energy production, including LNG and nuclear.
Doug Burgum, the former governor of North Dakota, a state that produces oil, and Trump's nominee for Interior Secretary, will likely clear the path for increased oil and gas leasing in federal lands. Burgum will lead a national council on energy to look for ways to increase energy production. (Reporting and editing by Christopher Cushing in Washington, Kate Mayberry and Kanishka Singh)
(source: Reuters)
