U.S. President Donald Trump has ended the moratorium on new liquefied natural gas export permits imposed by his predecessor Joe Biden in January 2024.
Trump targeted the LNG industry with an executive order on the first day, part of a series of planned policy moves to encourage more U.S. energy production.
Biden paused new approvals pending a study into the environmental and economic effects of the booming export industry. The study was released in December.
U.S. LNG output was set to more than double regardless of the moratorium. Before Biden halted new permit approvals, the government had already given the green light to projects that would increase U.S. LNG capacity to 200 million tonnes per annum (MPTA) from around 90 MPTA. Those projects were not affected by the moratorium.
New permits issued by Trump’s government would likely increase export capacity from 2030 onwards, because it takes several years to build LNG plants.
The United States is already the world’s largest LNG exporter and shipped 88.3 million tonnes of the superchilled gas in 2024. This year alone, three new plants should add nearly 50 MPTA to U.S. capacity.
Venture Global’s Plaquemines LNG plant in Louisiana which at peak would add 20 million tonnes per annum (MTPA) and Cheniere Energy’s LNG 10 MTPA Stage 3 expansion at Corpus Christi, Texas.
Both plants began producing LNG in December 2024 and are still under construction.
The long delayed joint venture between ExxonMobil XOM and QatarEnergy (QATPE.UL), Golden Pass LNG Texas is also expected to produce the first LNG in 2025 and at peak would have a capacity of 18.1 MTPA.
EXPANSION
There are also a number of plants that already have DOE export permits but need approvals to increase their capacity.
They include Venture Global LNG’s Plaquemines and Calcasieu Pass plants, and Kinder Morgan’s (KMFC.UL) Elba Island LNG plant.
MEXICO
In Mexico, the Mexico Pacific LNG project located in Saguaro will liquefy U.S. gas and therefore needs the DOE permit.
New Fortress Energy’s NFE Altamira FLNG plant on Mexico’s Pacific coast was the only project to get a license to export to countries not covered by free trade agreements during the pause.
Source: Reuters