Photo credit: www.investing.com
LNG Projects in Texas and Louisiana Surge Ahead Following Presidential Decision
HOUSTON (Reuters) – In a significant development for the liquefied natural gas (LNG) industry, three companies in Texas and Louisiana are set to advance their projects in light of an executive order from U.S. President Donald Trump that lifts restrictions placed by the previous administration on export permits.
This executive order reverses the pause initiated by former President Joe Biden in early 2024, which was aimed at assessing the environmental and economic impacts of the rapidly expanding LNG export sector.
With the shift in policy, nearly 100 million metric tons per annum (MTPA) of LNG could be added by 2031 from projects that are sufficiently advanced, further solidifying the United States’ position as the leading exporter of LNG globally.
“We remain committed to our current and upcoming expansion projects and are optimistic about obtaining all necessary regulatory approvals,” stated Bernardo Fallas, Director of Communications at Cheniere Energy.
As the largest LNG exporter in the U.S., Cheniere Energy has been awaiting an export license for its 3 MTPA midscale expansion project 8 and 9 in Texas.
Commonwealth LNG, which has experienced extended delays in securing its permit, aims to construct a 9.5 MTPA export facility in Louisiana designed to cater to nations lacking a free trade agreement with the U.S. The company has expressed that Trump’s decision aligns with the public’s interests.
According to a spokesperson, “We are dedicated to establishing a top-tier LNG export facility.”
Energy Transfer also applauded the lifted restrictions. While it already holds an export license for its 15.5 MTPA facility in Louisiana, it requires a new permit following the Energy Department’s refusal to extend its existing license due to construction delays.
“We anticipate the Department of Energy will promptly move forward with the authorization of new LNG export facilities, including our Lake Charles LNG export facility,” commented Vicki Granado, a spokesperson for Energy Transfer.
Experts predict that six additional LNG plants may receive financial backing within the first two years of Trump’s administration, according to Alex Munton, director of global gas and LNG research at Rapidan Energy Group.
Under the Biden administration’s review, findings showed that the U.S. natural gas supply could adequately fulfill both domestic requirements and international demand for U.S. LNG. However, the study also indicated that if export scenarios were unconstrained, domestic gas prices might increase by 31% by 2050, resulting in an annual rise in natural gas expenses for American households of over $100, with variations by region.
In contrast, environmental advocacy group Friends of the Earth criticized Trump’s decision, asserting that it will exacerbate the climate crisis and increase gas prices by diverting domestic supplies to international markets.
Source
www.investing.com