
President-elect Donald Trump made the pause an issue during the campaign and pledged to end it once his term begins. (Source: Shutterstock)
The federal government’s study of U.S. LNG exports may be released Dec. 17 and will be critical of many aspects of the sector, while stopping short of saying the LNG trade is not in the public interest, Reuters reported.
Reuters attributed the report to anonymous sources within the industry.
The Biden administration cited the study as the reason for the pause, which stopped awarding LNG permits to producers at the beginning of 2024.
The Department of Energy (DOE), which oversees the LNG permits allowing sales to non-free trade agreement countries, has said a study on the environmental and economic effects of the LNG trade was required for the safety of nearby communities and the global environment.
The decision brought in a great deal of scrutiny from critics, some who greeted the oncoming resulting study with the same level of scrutiny.
Reuters’ sources said the study cites data about the impact of LNG exports on prices in the domestic gas market and the environmental impacts of a rapidly growing global trade.
“Just remember, this ‘review’ was political from the start of the pause back in February, when (White House) Climate official Ali Zaidi announced it (not DOE), as a means to prevent an enviro group protest at DOE in the beginning of a campaign year,” wrote Frank Maisano, senior principal at Bracewell LLP, a Houston-based energy law firm. Maisano made the comments in a Dec. 16 newsletter.
When it was implemented, critics said the LNG pause was primarily an effort to strengthen the White House’s standing among environmental groups in an election year.
Industry representatives said the decision threw a wet blanket on ongoing investment negotiations for LNG development and weakened investor confidence in the LNG sector as a whole, especially if the study recommends new regulations.
President-elect Donald Trump made the pause an issue during the campaign and pledged to end it once his term begins.
People within the industry have been anticipating the arrival of the study for several weeks. At the beginning of December, a DOE representative confirmed that the report would be released before the end of the month. Following its release, there will be a 60-day comment period on the data and recommendations.
Officials aligned with the White House have stated the pause’s effects on the LNG sector will be minimal. The U.S.’ LNG export capacity is expected to more than double by 2028, from about 12 Bcf/d to 24.4 Bcf/d, even if no new permits are awarded.
The nation’s newest LNG facility, Venture Global’s Plaquemines in Louisiana, began production on Dec. 13.
The Louisiana Bucket Brigade, an environmental group, pointed to "excessive flaring events" at Venture Global's Calcasieu Pass facility, also in Louisiana, as a reason for concern, according to a Dec. 16 press release. The group said observers spotted flares at the facility lasting more than 100 hours, occasionally reaching 90 feet in height.
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