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New Federal Administration Reverses LNG Gas Export Facility Permit Pause, Extends Comment Period On LNG Impact Study

On January 20, the U.S. Department of Energy, effective today, is ending the Liquefied Natural Gas (LNG) pause and returning to regular order following direction given by President Donald J. Trump to “unleash American Energy Dominance.”

The Office of Fossil Energy and Carbon Management (FECM) is directed to resume consideration of pending applications to export American liquefied natural gas (LNG) to countries without a free trade agreement (FTA) with the United States in accordance with the Natural Gas Act. Proper consideration of LNG export applications is required by law and shall proceed accordingly.

Extends Comment Period

Last month, the Department published a multi-volume analysis of selected issues concerning LNG exports and established February 18, 2025, as the deadline for public comments of the study.

To ensure such public interest determinations receive appropriate stakeholder input, the Department is extending the comment period from February 18, 2025 to March 20, 2025.

Notwithstanding the goal of expeditious determinations, the importance of appropriate administrative records justifies an extension of the period for public comment.

Acting DOE Secretary Ingrid Kolb has directed the FECM to return to regular order and resume consideration of all applications. This process should occur simultaneously with the multi-agency NEPA review process to streamline and reduce inefficiencies in the regulatory process.

Click Here for the announcement.

Export Study Findings

Biden Administration U.S. Energy Secretary Jennifer M. Granholm released a Secretarial Statement outlining departmental leadership’s perspective on the final study.

Here are some key findings from the Secretary’s statement--

-- Already Approved Facilities Will Meet Demand For Decades: LNG gas export facilities already approved “will be more than sufficient to meet global demand for U.S. LNG for decades to come.” “U.S. LNG exports have already tripled over the past five years, will double again by 2030, and could double yet again under existing authorizations.”

-- Energy Consumers, Manufacturers Will Face Higher Energy Costs: "Unfettered exports of LNG would increase wholesale domestic natural gas prices by over 30%;" increases in electricity prices because natural gas dominates generation. [In Pennsylvania it accounts for 59% of generation capacity. Read more here.]; and increased costs for manufacturers that use natural gas as feedstock.

-- LNG Gas Export Facilities Burden Already Polluted Communities: LNG facilities tend to be concentrated in communities that are being asked to shoulder the additional burden of pollution from increased natural gas production and liquefaction. This comes on top of existing environmental burdens from refining, petrochemical, and other industries already concentrated near these communities. [The proposal to build an LNG export facility in Chester, Delaware County is just one example. Read more here.]

-- Climate Impact Merits Close, Rigorous Analysis: While some tout LNG as a means to reduce the use of coal overseas (and to date that has been the case with some importing countries), the study put forward today shows a world in which additional U.S. LNG exports displace more renewables than coal globally.

-- We Need To Know Where Those Exports Are Headed: “Based on current global demand for LNG, the People’s Republic of China is already the world’s largest importer. Looking ahead, China's LNG exports are expected to nearly double between now and 2030, and China's LNG imports are expected to be the highest of any country through 2050.

PRC entities have already signed several contracts with operating or proposed U.S. LNG projects.

Future authorization decisions of what is in the “public interest” need not be made solely on a binary – yes or no – basis but could be undertaken using a broader framework of requirements for all authorizations.

[Pennsylvania shale gas producers have already said they have a “duty” to supply China-- our economic and military competitor-- with natural gas to reduce greenhouse gas emissions. Read more here.]

“Regardless of what happens in each cycle of elections, the effect of increased energy prices for domestic consumers combined with the negative impacts to local communities and the climate will continue to grow as exports increase.”

“In the decade to come, we will see strong and mounting pressure within our democratic system to ensure that the United States uses its market position in a way that truly advances our national interest and energy security, which must include the needs of American workers, American families, and our responsibility to address the climate crisis.

“In our view, the question is not whether U.S. export policy will be forced to respond to those interests, but when and what that response is.” Read more here.

(Logo from new White House website.)

Resource Link:

-- US DOE Releases LNG Gas Export Study: Facilities Already Approved Will Meet Global Demand For Decades; Unfettered Exports Would Increase Domestic Natural Gas Prices; Electricity Prices; Costs To Manufacturers [PaEN]

Related Articles - LNG Order:

-- New Federal Administration Reverses LNG Gas Export Facility Permit Pause, Extends Comment Period On LNG Impact Study [PaEN]

NewsClips - LNG:

-- Post-Gazette: New Administration Reverses Pause On New LNG Gas Export Project Permits [Helps Pave Way For Potential LNG Terminal In Philadelphia]

-- Bloomberg: Exxon: New US LNG Gas Supply Will Take Years To Start [2026-2027]

-- Reuters: US Will Guarantee LNG Gas Supplies For Europe Amid Worries Booming Export Industry Could Boost Prices For US Consumers

-- Financial Times: Wall Street Will Stymie President’s US Oil, Gas Surge Plan, Say Shale Bosses; Lower Prices Will Not Make Companies ‘Drill, Baby, Drill’

-- Bloomberg: New President Lifts Pause On LNG Gas Export Facility Permits

-- Reuters: New President Lifts Pause On LNG Gas Export Facility Permit Applications