Trump Set to Ease LNG Export Permit Renewals, Sources Reveal
Trump Set to Ease LNG Export Permit Renewals, Sources Reveal
U.S. President-elect Donald Trump intends to facilitate the process for specific liquefied natural gas (LNG) producers to apply for renewals of their export permits, according to two informed sources.
The sources indicated that Trump is expected to incorporate this amendment into an executive order regarding LNG that he plans to sign on his first day in office.
The incoming president, who will assume office on Monday, has mentioned that he will issue an LNG-related order on day one that would lift the suspension on new LNG project approvals imposed by outgoing President Joe Biden in January of last year.
Keep reading
- Israeli Cabinet Delays Approval of Gaza Ceasefire Deal as Strikes Kill 77
- Gold Hits Over One-Month High as US Data Weakens Yields
- NASA’s JWST Uncovers One of the Earliest ‘Truly Gargantuan’ Supernovas
- Gaza Ceasefire Brings Hope and Heartbreak: ‘Staying Alive Was Luck
Several companies possess permits to export LNG to nations not part of free trade agreements with the U.S. but have yet to construct their facilities. These companies face the risk that their permits may not be renewed, potentially jeopardizing their projects.
Firms developing LNG plants rely on preliminary export agreements with global buyers and associated licenses for export to secure financing for their projects.
“This action will give them more assurance and an extended timeline to market their volumes and obtain financing for the project,” noted Jason Feer, the global head of business intelligence at Poten and Partners. The U.S. is the largest superchilled gas exporter, a position bolstered by the shale revolution.
It has played a significant role in supplying energy following Russia’s invasion of Europe. In April 2023, the U.S. Department of Energy (DOE) declined to grant export permit extensions to LNG developers that did not meet construction deadlines.
The DOE announced that it would cease considering new applications for extensions to seven-year commencement permits unless companies could demonstrate that they had physically initiated construction on an LNG export facility or faced significant circumstances.
This determination came after pipeline company Energy Transfer (ET.N) sought a three-year extension of its permit to build an LNG export facility in Lake Charles, Louisiana.
Source: Reuters
umer
1 thought on “Trump Set to Ease LNG Export Permit Renewals, Sources Reveal”