The U.S. Department of Energy (DOE) announced it will resume approving or rejecting pending LNG export permits to non-free trade agreement countries, following the completion of a final environmental and economic impact study. The move ends a 2024 pause imposed by the Biden administration, which sought to assess whether expanding LNG shipments could raise domestic gas prices or harm climate goals.
The U.S., already the world’s top LNG exporter, is poised to triple export capacity by 2030, but the pause had raised concerns over stalled projects. The DOE’s decision signals a return to routine permit approvals, with major projects like Energy Transfer’s Lake Charles plant (16.5 MTPA) and Cheniere’s Texas midscale facilities awaiting final clearance.
Energy Industry Reaction:
- Cheniere Energy expressed confidence in securing approvals for its Final Investment Decision (FID) this year.
- DOE officials argued LNG exports boost the economy, aid allies, and strengthen national security, citing the study’s conclusions.
Environmental Opposition:
Critics, including the Sierra Club, condemned the move, citing the study’s findings that unrestricted LNG exports could spike U.S. gas prices by 30% and undermine climate commitments like the 1.5°C warming limit.
What’s Next?
The decision reignites tensions between energy expansion advocates and climate activists, with global gas markets watching for new U.S. export capacity approvals.