U.S. Energy Department Announces Authorization for Commonwealth LNG Project

The U.S. Energy Department on Feb.14 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.  The authorization is the first major U.S. liquefied natural gas (LNG) project to receive an export authorization for non- FTA countries since U.S. President Donald Trump and the department waived the Biden Administration’s restriction on LNG export permit approvals.

Last month, the department announced that it is ending the pause on new LNG export permits following an executive order issued by President Donald Trump. In January 2024, the former 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.

Commonwealth LNG intends to construct and operate a natural gas liquefaction plant that aims to liquefy and export LNG to foreign markets. Domestically produced natural gas would be sourced from the existing interstate and intrastate pipeline systems of Kinetica and Bridgeline, respectively, in southwest Louisiana.

The Commonwealth LNG is expected to export over 1.2 billion cubic feet per day (Bcf/d) of natural gas as LNG, and will reinforce the U.S. position as the leading global exporter of LNG.  Moreover, LNG exports from the Commonwealth LNG are expected to yield economic benefits to the U.S., enhance energy security and reliability for U.S. trading partners and diversify global LNG supplies. According to the U.S. Energy Information Administration, U.S. LNG exports are projected to reach all time highs during 2025, averaging over 15 Bcf/d.