US DOE clears path for approving LNG exports, deeming them in public interest

The U.S. Department of Energy (DOE) has responded to comments on the assessment of liquefied natural gas (LNG) exports on the country’s energy, economy, and the environment, marking what it says is a “critical” step toward the resumption of issuing export orders to non-free trade agreement (FTA) countries. 

Now that its Response to Comments to the 2024 LNG Export Study: Energy, Economic, and Environmental Assessment of U.S. LNG Exports has been published, DOE has removed what it describes as “final hurdles left over from the Biden administration’s reckless pause on LNG export permits,” enabling the Trump administration to fully unleash American LNG exports.

“President Trump was given a mandate to unleash American energy dominance, and that includes U.S. LNG exports,” said U.S. Energy Secretary Chris Wright. “The facts are clear: expanding America’s LNG exports is good for Americans and good for the world. Today, the Department of Energy is following the facts, closing the door on the Biden administration’s failed policies, and putting America’s energy future on stronger footing.”

DOE believes the 2024 LNG Export Study, the comments received, and the response to comments support the proposition that exports of LNG from the country are in the best interest of the American public. With the public comments now addressed, DOE plans to proceed with issuing final orders on pending applications to export U.S.-sourced natural gas as LNG to non-FTA countries.

The 2024 LNG Study was released at the end of the Biden administration in December 2024, with a public comment period lasting until March 20, 2025. According to DOE, over 100,000 comments were received from stakeholders, including participants in the natural gas industry, industrial users, environmental organizations, think-tanks, academics, and individuals.

Based on the 2024 LNG Export Study and the public comments received, the Department made several key findings.

According to the DOE, a primary finding of the Study is that the domestic natural gas supply is sufficient to meet both domestic demand and the modeled global demand for U.S. LNG in all scenarios. This encompasses sensitivity scenarios on the U.S. oil and gas supply.

Furthermore, DOE said expanding U.S. LNG exports not only increases GDP in all cases but also improves the balance of trade in the country, thanks to an increase in the quantity of U.S. products sold abroad. While the latter is not highlighted in the Study, the Department agreed with comments raised that an improved trade balance would be an important benefit of greater LNG exports.

Next, the potential price impacts from increased LNG exports were referenced. DOE noted that increased LNG exports are projected to have relatively modest impacts on prices due to the abundant U.S. supply of natural gas, adding that no consistent effect of the U.S. LNG exports on prices has been registered to date.

In this context, the Department also stated that modeled price increases in the 2024 LNG Export Study are lower than both its previous analysis on this topic and price levels observed in the market in recent years.

Furthermore, the Department believes the increased U.S. LNG exports would enhance national and energy security for the United States, as well as U.S. allies and trading partners, by making more energy available.

DOE added that, regardless of Europe’s future natural gas consumption, a higher level of U.S. LNG exports will increase energy supplies globally and enhance energy security for all U.S. allies, whether in Europe or elsewhere.

“The 2024 Study confirms what our nation always knew—LNG supports our economy, strengthens our allies, and enhances national security. Biden’s opposition defied reason and reality and hurt American progress. We are pleased to issue the Response to Comments on the 2024 LNG Export Study, which will allow DOE to close out this chapter and fully return to regular order on LNG exports,” noted Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management.

As for the environmental impacts, even if the U.S. LNG exports more than triple from current levels, the cumulative increase in global greenhouse gas (GHG) emissions to 2050 would be no greater than 0.1%, the Department said. Since DOE cannot conclude that global emissions would necessarily increase, the GHG emissions discussed in the study are not expected to affect its public interest determination in pending or future non-FTA authorizations.

In relation to another environmental issue, the Study found that expanded U.S. LNG exports are more likely to displace fossil fuels than renewable energy resources in all modeled scenarios. Including displacement of natural gas sourced from other countries along with coal and oil, modeled displacement effects for fossil fuels are said to be larger than for resources such as wind and solar power.

Finally, natural gas production and the development of natural gas export infrastructure are expected to provide economic support to the communities in which they occur, which is anticipated to result in increased levels of employment.

Paired with a recent removal of the requirement for LNG exporters to meet stringent criteria before their requests to extend the commencement date of non-free trade agreement export authorizations are reviewed, this is expected to bring clarity to projects awaiting their application authorizations.

While some projects are awaiting their permits, others have already received the green light from the Trump administration, including Commonwealth LNG, Golden Pass LNG, Delfin LNG, and CP2 LNG.