Saturday, 29 March 2025
Home Topics Fuel Liquefied Natural Gas Trump to end need for some LNG export permit renewals, sources say
Liquefied Natural GasNewsRegulationsTrade

Trump to end need for some LNG export permit renewals, sources say

42
FILE PHOTO: Republican presidential nominee and former U.S. President Donald Trump gestures as he speaks during a press conference at Trump Tower in New York City, U.S., September 6, 2024. REUTERS/David Dee Delgado//File Photo
FILE PHOTO: Republican presidential nominee and former U.S. President Donald Trump gestures as he speaks during a press conference at Trump Tower in New York City, U.S., September 6, 2024. REUTERS/David Dee Delgado//File Photo

By Curtis Williams and and Jarrett Renshaw

HOUSTON (Reuters) -U.S. President-elect Donald Trump plans to make it easier for some producers of liquefied natural gas (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 Monday, 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.

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.

“The move will give them greater certainty and a longer timetable to sell their volumes and raise financing for the project,” said Jason Feer, Poten and Partners Global head of business intelligence.

The U.S. is the world’s largest exporter of the superchilled gas, driven by the shale revolution, and played a key role in providing energy in the wake of Russia’s invasion of Europe.

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.

(Reporting by Curtis Williams in Houston and Jarrett Renshaw; Editing by Simon Webb, Leslie Adler and Diane Craft)

Related Articles

Lilium burnt through huge sums while trying to develop its jet (AFP)

German flying taxi start-up’s rescue deal collapses

A German flying taxi start-up said on Friday it would halt operations...

FILE PHOTO: U.S. Secretary of the Interior Doug Burgum speaks as he attends a signing ceremony with members of the West Virginia Congressional Delegation at the EPA headquarters in Washington, D.C., U.S., February 18, 2025. REUTERS/Kent Nishimura/File Photo

US energy council chief says power plants to produce 15% more electricity

By Valerie Volcovici WASHINGTON (Reuters) – U.S. Interior Secretary and co-chair of...

Cuba has inaugurated a new solar energy park in the capital Havana (AFP)

Cuba opens solar park hoping to stave off blackouts

Cuba on Friday unveiled a new solar energy park in the capital...

FILE PHOTO: Cranes unload imported iron ore from a cargo vessel at a port in Lianyungang, Jiangsu province, China October 27, 2019. REUTERS/Stringer/File Photo

Iron ore heads for weekly gain on brightening demand outlook, China stimulus hopes

By Amy Lv and Lewis Jackson BEIJING (Reuters) -Iron ore futures prices...