Model of LNG tanker is seen in front of the U.S. flag in this illustration taken May 19, 2022.
In early 2024, the Biden administration temporarily paused approvals for such permits. The delay was implemented to allow time for a review of how rising LNG exports might affect domestic gas prices and the environment, considering increased demand from export facilities.
The United States, currently the largest exporter of LNG globally, is projected to triple its export capacity by the end of this decade. The pause on approvals had raised concerns about slowing future export growth. With the release of the study, the DOE has resumed processing applications, signaling a return to standard procedure.
Tala Goudarzi, Principal Deputy Assistant Secretary of the DOE’s Office of Fossil Energy and Carbon Management, stated: “The 2024 study confirms what our nation always knew — LNG supports our economy, strengthens our allies, and enhances national security.”
Projects now awaiting DOE permits include Energy Transfer’s planned 16.5 million metric tons per annum plant in Lake Charles, Louisiana, and Cheniere Energy’s Midscale 8 and 9 facilities in Texas. Cheniere responded to the DOE's announcement with optimism: “We remain confident we will receive all necessary regulatory approvals in time to FID the project later this year,” referring to its final investment decision.
On the first day of his presidency, Donald Trump declared an energy emergency and resumed approvals for LNG exports to non-free trade agreement countries. The DOE’s current decision represents a continuation of U.S. LNG policy following the completion of updated analysis.
Environmental organizations voiced concern over the agency's decision. Several groups stated that the DOE overlooked findings in its own study, which indicated that unrestricted LNG exports could increase wholesale domestic gas prices by over 30%. They also cited potential risks to public health and challenges in meeting global climate targets.
Mahyar Sorour, Director of Beyond Fossil Fuels Policy at the Sierra Club, stated: “LNG exports raise costs to Americans' energy bills, are disastrous for frontline communities, increase public health harms, and perpetuate the climate crisis.”
Despite differing viewpoints, the DOE’s move marks a significant step in U.S. energy policy, with implications for both domestic markets and international energy trade. The decision clears the way for developers to proceed with project planning and investment strategies, pending final permit approvals.
