By Curtis Williams
HOUSTON (Reuters) - Three companies developing liquefied natural gas (LNG) projects in Texas and Louisiana said they will move full speed ahead with their plans after U.S. President Donald Trump lifted the previous administration's freeze on export permits.
Trump's executive order effectively reversed a pause on permits for new projects that former President Joe Biden put in place in early 2024 to study the environmental and economic effects of the booming export industry.
Trump's decision could pave the way for almost 100 million metric tons per annum (MTPA) of additional LNG by 2031 by projects that are significantly advanced, further cementing the U.S. as the world's largest exporter of LNG.
"We remain full speed ahead on our current and future expansion projects and are confident that we will secure all necessary regulatory approvals," said Cheniere Energy (NYSE:LNG)'s Director of Communications Bernardo Fallas.
Top U.S. LNG exporter Cheniere Energy has been awaiting an export license for its 3 MTPA midscale 8 and 9 expansion project in Texas.
Commonwealth LNG, which has waited longer than any other company for its permit, wants to build a 9.5 MTPA export plant in Louisiana to sell to countries that do not have a free trade agreement with the U.S., said Trump's decision was in the public’s best interest.
The company "is focused on building a world-class LNG export facility," a spokesman said.
Energy Transfer (NYSE:ET) also welcomed the decision. It had an export license for its 15.5 MTPA facility in Louisiana but needed a new permit after the Energy Department refused an extension of its license due to delays in completing construction.
"We look forward to the Department of Energy swiftly moving forward with authorizing new LNG export facilities including our Lake Charles LNG export facility," company spokesperson Vicki Granado said.
Six other plants could get the financial go-ahead in the first two years of the Trump administration, said Alex Munton, director of global gas and LNG research at consulting firm Rapidan Energy Group.
The Biden administration's study found U.S. natural gas supply is sufficient to meet domestic demand for the fuel and global demand for U.S. LNG. But in an unconstrained LNG export scenario, domestic gas prices would rise 31% in 2050, it found, which would raise natural gas bills for U.S. households by more than $100 a year with prices varying by region.
Friends of the Earth on Tuesday said Trump's decision will accelerate the climate crisis and drive up gas prices by sending supplies abroad.