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Newly inaugurated US President Donald Trump has signed an executive order directing the resumption of processing export permit applications for new liquefied natural gas (LNG) projects. This decision reverses the pause initiated by former President Joe Biden in early 2024, marking a significant shift in US energy policy.
Resumption of Permit Processing and Impact on LNG Industry
The Biden administration had paused LNG permit approvals to assess the environmental and economic impacts of the expanding export industry. However, under Trump’s new directive, the Department of Energy (DOE) will resume processing pending applications for countries that do not have free trade agreements (FTAs) with the US. This action is expected to expedite projects that had been delayed, such as LNG terminals in Louisiana and Texas, including high-profile projects from Commonwealth LNG, Venture Global, and Sempra’s Port Arthur LNG.
In 2023, the US set a record for LNG exports, becoming the world’s largest exporter of the commodity. The DOE predicts that US LNG exports will double by the end of the decade, further boosting the country’s energy dominance.
The DOE’s Office of Fossil Energy and Carbon Management (FECM) will prioritize processing the permits while also extending the public comment period for its recent LNG export study. Originally set to close on February 18, 2025, the period will now remain open until March 20, 2025, ensuring thorough stakeholder input.
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