President Trump has resumed LNG export approvals, which had been paused under former president Biden.
The US Government has granted an LNG export licence to the Commonwealth LNG project in Louisiana, marking the first such approval since the pause on LNG exports announced by the previous administration. The global energy market, particularly the Asia and Europe markets, stand to benefit from the decision.
Energy Secretary Chris Wright emphasised the move's benefits, noting that exporting US LNG will strengthen the US economy, support US jobs and enhance global energy security.
The approval comes as the US seeks to increase exports to Europe to help the region reduce its reliance on Russian gas following the conflict in Ukraine.
Commonwealth LNG plans to construct a 9.5 million tpa export plant in Louisiana.
The company expects to make a final investment decision by September 2025, pending regulatory approval, with the first LNG production expected in early 2029.
Commonwealth CEO Farhad Ahrabi said: “Today’s actions demonstrate that President Trump is prioritising the American energy industry, and we are both pleased and grateful to have achieved these important regulatory objectives.”
Other LNG companies including Cheniere and Energy Transfer are also moving forward with their export plans.
US LNG exports are projected to double by the end of the decade based on previously granted approvals.
However, environmentalists have expressed concerns about the potential increase in carbon emissions due to the LNG boom, while some manufacturers fear a rise in domestic gas prices.
Additionally, President Trump has established a new energy council led by Interior Secretary Doug Burgum to expand US oil and gas output.
Trump also commented on his strategy to enhance drilling, revealing that more than 600 million acres of offshore federal waters are now available for oil and gas development.
He is also seeking approval for the Constitution natural gas pipeline, which would transport gas from Pennsylvania to New York, aiming to lower energy prices in the region.
However, the pipeline's future remains uncertain following its cancellation in 2020 due to opposition.
Last month, President Trump launched a comprehensive plan to boost oil and gas production.
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