U.S. President-elect Donald Trump plans to abolish the requirement for some producers of LNG to seek export permit renewals, according to two sources with knowledge of the plan.
Trump will likely include the change in an executive order on LNG that he will issue on his first day in office, the sources said. Trump, who takes office on Jan. 20, has said he would issue an LNG order on day one that would end the pause on approvals for new LNG projects that outgoing President Joe Biden put in place in January last year.
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Political, Legal Fight Over Biden’s LNG Pause Intensifies
Several companies have permits to export LNG to countries that are not part of free trade agreements with the U.S. and have yet to build their plants.
The companies run the risk of their permits not being renewed, which can endanger their projects. Companies developing LNG plants use preliminary export deals to buyers around the world - and related permits for export - to seek financing for projects.
In April 2023 the U.S. Department of Energy (DOE) refused to grant export permit extensions to LNG developers that failed to meet a construction deadline.
The DOE said it would no longer consider new applications for extensions to seven-year commencement permits, unless companies prove they have physically started construction on an LNG export facility, or faced extenuating circumstances.
The decision was made after pipeline company Energy Transfer applied for a three-year extension of its permit to construct an LNG export facility in Lake Charles, Louisiana.
The company argued it wanted a second extension due to a variation in the design of the project to include a major carbon capture and sequestration component.
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