Trump Restores LNG Export Licenses

Trump issued an order on the 20th requiring the United States to resume processing export license applications for new liquefied natural gas (LNG) projects to increase U.S. energy production, while repealing the Biden administration's climate policy.

Biden had implemented an order to suspend new project licenses in early 2024 so that U.S. national laboratories could study the environmental and economic impacts of the booming export industry.

In 2023, the United States set a record for LNG shipments, becoming the world's largest LNG exporter. The U.S. Department of Energy said it expects LNG exports to double in a decade, and exports could double again under existing authorizations.

But the suspension of new export licenses has created uncertainty for a range of ongoing projects, many of which supply Asia and Europe.

The plants awaiting approval in Louisiana include Commonwealth LNG, Venture Global's CP2, Cheniere Energy's Sabine Pass facility expansion project and Energy Transfer's Lake Charles. In Texas, Sempra's Port Arthur LNG project phase II is awaiting approval.

Trump's new energy team is tasked with fulfilling his promise to boost U.S. oil and gas production. He picked Chris Wright to run the Department of Energy, which issues liquefied natural gas export licenses, and to lead oilfield services company Liberty Energy, who told senators at his nomination hearing last week that his top priority is expanding domestic energy production, including liquefied natural gas and nuclear power.

Doug Burgum, a former governor of the oil-producing state of North Dakota and Trump's nominee for interior secretary, is expected to pave the way for more oil and gas leasing on federal lands. Burgum will lead a national energy commission to look for ways to increase energy production.