- Energy Department to Resume Reviewing New LNG Export Applications.
- US LNG Export Projects Get Boost as Moratorium Ends.
- Japan Welcomes US LNG Export Policy Shift.
President Donald Trump has delivered a campaign promise with the lifting of the moratorium imposed by his predecessor, Joe Biden, on new US liquefied natural gas export licenses. This had halted the review of new export permits by the Energy Department due to Biden’s study on the climate, economic, and national security impacts of more LNG exports, reports Bloomberg.
Energy Department Resume License Reviews
Trump’s order, as part of a sweeping executive order on energy, tells the Energy Department to restart processing applications for new LNG export licenses. This follows a study that Biden’s administration released last month, which said increased exports would raise natural gas prices for US consumers and increase global emissions. Those conclusions could pose challenges to the speedy approval of new permits.
Effects on US Export Projects
This will be a relief for large export projects: Venture Global LNG Inc., Energy Transfer LP, and Commonwealth LNG, among others, which had faced disruptions in their multi-billion-dollar plans for LNG export facilities due to the halt that had been given earlier. In the order of Trump, consideration is given towards economic and employment benefits as well as security impacts on US allies and partners.
Japan’s Response to US LNG Export Policy
Japan, a key importer of US LNG, has expressed interest in the policy shift. Trade Minister Yoji Muto stated, “We recognize that it could have an impact on the global LNG market, where supply and demand are structurally tight, and that it could increase supply and contribute to stabilizing the market. We believe that this will also increase the predictability of Japan’s LNG procurement.”
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Source: Bloomberg
