U.S. Energy Department Approves LNG Export Permit Extension for Delfin LNG

The U.S. Energy Department on March 10 approved a liquefied natural gas (LNG) export permit extension for Delfin LNG, allowing additional time to start exports off the coast of Louisiana. The permit extension had been delayed by the former Biden administration.

The approval follows an executive order issued by President Donal Trump on Jan. 21, which ended the pause on new LNG export permits. Following the executive order, the Office of Fossil Energy and Carbon Management is required to resume consideration of pending applications to export U.S. LNG to countries with which the U.S. does not have a free trade agreement, or non-FTA countries, in accordance with the Natural Gas Act. In January 2024, the former 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 permit extension for Delfin is the fourth LNG related approval from the department, since President Trump took office. On Feb. 14 the department announced a new export authorization for the Commonwealth LNG project. Following the approval, Commonwealth LNG is now able to export LNG to non-free trade agreement (FTA) countries from the proposed Commonwealth LNG project. On Feb. 28 the department announced an order removing barriers for the use of LNG as marine fuel to power vessels. Lastly, the department on March 5 approved an LNG export permit extension for Golden Pass LNG terminal.

U.S. LNG export profitability has significantly increased since the Russian invasion of Ukraine and the corresponding impact on global gas prices. The Russian invasion of Ukraine led to a structural shift in the market, which has impacted trading dynamics for a number of energy sources. Russian pipelined gas to Europe has significantly declined since the Russian invasion of Ukraine. As a result, the European Union is relying heavily on LNG to fulfill domestic demand.

Delfin is aiming to reach a final investment decision at some point during 2025 and have construction begin on its offshore floating LNG vessel. The department’s approval extends the start date for Delfin exports authorization for volumes of up to 1.8 billion cubic feet per day (Bcf/d) of natural gas as LNG to non-FTA countries to June 1, 2029.