Advisers to President-elect Donald Trump are reportedly urging him to take a patient approach to restart approvals for liquefied natural gas (LNG) export licenses, fearing rapid approvals will get overturned in court. They recommend a calculated strategy for resuming LNG export approvals to preempt legal challenges. Though Trump has vowed to reverse President Joe Biden’s LNG pause swiftly, his team is exploring ways to counter a recent Biden administration study linking LNG exports to climate risks, including potentially extending a public comment period to allow more time to undermine the study’s findings and strengthen the legal durability of new project approvals.
President Joe Biden imposed a moratorium on new LNG export licenses to placate environmentalists opposed to fossil fuels, particularly in the lead-up to an election year. He also directed his administration to review the U.S. LNG sector last January. This pause has caused delays for several projects, including Venture Global’s CP2 facility, the Commonwealth LNG terminal, and Energy Transfer’s Lake Charles export complex—many of which had already secured approval from the Federal Energy Regulatory Commission.
President-elect Trump has pledged to reverse Biden’s LNG moratorium, promising to greenlight the export projects still awaiting licenses. He has a clear mandate to fulfill his campaign promises, including reducing energy costs for consumers. Trump intends to issue an executive order on LNG exports on his first day in office. However, the specifics of that order are still under discussion as his team weighs the urgency of political action against the risk of protracted legal challenges.
The Biden administration released its study on LNG exports in December, which, while not explicitly endorsing a continuation of the export moratorium, raised concerns about the potential climate impact of unconstrained LNG shipments. The report also warns that if LNG were to replace lower-carbon energy sources rather than coal in overseas markets, it could worsen climate change. Additionally, it warned that rising natural gas exports might elevate domestic energy prices and could benefit countries like China by providing them with low-priced fuel. Despite the rapid growth in U.S. LNG exports—from almost nothing in 2015 to about 200 billion cubic feet by 2019—residential natural gas prices actually decreased during that period. The increased demand for LNG spurred infrastructure development to deliver stranded or associated gas, creating jobs and expanding U.S. energy infrastructure. Between 2016 and 2023, U.S. residential natural gas prices have remained largely stable when adjusted for inflation, with only slight fluctuations compared to prior years.
By 2023, the United States became the world’s largest LNG exporter, with shipments primarily directed to Asia and Europe as U.S. LNG companies worked to help Europe reduce its dependence on Russian energy following Russia’s invasion of Ukraine. However, environmental groups are likely to use the findings of the DOE’s report to challenge any new LNG export approvals under the Trump administration.
Advisers to President-elect Trump are urging him to use the public comment period to push back against key conclusions of the DOE study, highlighting earlier research that supports the benefits of LNG exports for the U.S. economy and national security. Another LNG export report prepared by the DOE in 2023, before the issue became highly politicized ahead of the presidential election, was never released. Reports suggest it concluded that LNG exports offer clear advantages to the U.S., including economic growth and enhanced national security. This aligns with President Trump’s stance during his first term when he frequently warned European leaders about the risks of growing reliance on Russian gas, which he argued made Europe vulnerable to Russian aggression.
The public comment period for Biden’s LNG study is set to close on February 18, just days after Trump takes office. However, not all of Trump’s key administration appointments may be confirmed by that date. His advisers are considering extending the comment period to allow more time to challenge the report and mitigate potential legal hurdles as they approve pending LNG export permits.
Conclusion
President-elect Trump has a formidable task to undo President Biden’s climate-oriented energy policies, which are still occurring even as Biden is about to walk out the door. Last January, Biden put a “pause” on LNG export permit approvals, indicating that his administration would perform a study to see if they continue to be in the public’s best interest. The study was released in mid-December. While not continuing the ban on LNG export permit approvals outright, it included enough fodder for environmentalists to use the survey in court to disrupt and delay any export permit approvals the Trump administration would approve. Comments on the report are due in mid-February. Trump’s advisors suggest that the comment period be used to discredit the findings in the DOE report and even extend it to promote earlier reports that showed LNG exports to benefit the nation.
