Trump Administration Ends Pause on Liquefied Natural Gas Export Permit Reviews

The U.S. Energy Department on Jan. 21 announced that it is ending the pause on new liquefied natural gas (LNG) export permits following an executive order issued by President Donald Trump. The Office of Fossil Energy and Carbon Management is required to resume consideration of pending applications to export U.S. LNG to countries without a free trade agreement with the U.S. in accordance with the Natural Gas Act. These actions are in stark contrast to former President Biden’s renewable energy and climate-focused policies.

Last January, the Biden administration had announced a temporary pause on pending applications for U.S. LNG exports, in order to update the criteria used to determine whether additional export authorizations are in the public interest. The pause did not affect exports that had been authorized or the ability to supply allies in Europe, Asia, or other recipients of authorized U.S. exports. An analysis released last month cautioned that further expansion of LNG exports could increase domestic energy costs and undermine climate goals.

The American Petroleum Institute applauded President Trump for “moving swiftly to chart a new path where U.S. oil and natural gas are embraced, not restricted.” On the other hand, Sierra Club opposed the decision saying that “Domestic energy prices will go up, the local fishing industry along the Gulf Coast will be decimated, our air and water will be polluted and our health threatened.” Studies conducted by the U.S. Energy Department found that unregulated U.S. LNG exports would increase domestic natural gas prices by more than 30 percent.

Last month, the department released an updated study, which found that unfettered LNG exports would drive up wholesale domestic natural gas prices. The study is intended to inform future decisions on whether export applications are in the public interest. The department during December 2024 published an in-depth analysis of certain issues impacting the U.S. LNG export market. The comment period for this study has been extended until March 20, 2025.