Trump’s Executive Order Reverses Biden-Era Moratorium
On January 21, 2025, President Donald Trump issued a sweeping executive order that dramatically shifted the landscape of U.S. energy policy, effectively reversing the moratorium on new liquefied natural gas (LNG) export permits implemented by the Biden administration in early 2024. This decisive action marks a significant turning point in the nation’s approach to energy exports, with far-reaching implications for the LNG industry, global energy markets, and environmental policy.The executive order contains several key provisions that aim to revitalize the U.S. LNG export sector:
- Immediate Resumption of Permit Processing: The order mandates the immediate restart of processing permits for LNG export projects, ending the pause that had created uncertainty for numerous developments in the pipeline.
- Expedited Application Reviews: The Department of Energy (DOE) has been instructed to accelerate the review process for LNG export applications, potentially shortening the timeline for project approvals.
- Prioritization of Alaska’s LNG Potential: The order places special emphasis on unleashing Alaska’s LNG capabilities, including the development of related infrastructure.
This policy reversal comes in the wake of the Biden administration’s decision to pause new LNG export permits, which was implemented to allow U.S. national laboratories to conduct comprehensive studies on the environmental and economic effects of the rapidly growing export industry. The pause had created a cloud of uncertainty over numerous projects in development, many of which were aimed at supplying the burgeoning Asian and European markets.The Trump administration’s move is likely to be welcomed by the U.S. LNG industry, which had already set export records in 2023, establishing the country as the world’s largest exporter of LNG. With the resumption of permit processing, industry analysts project that exports could potentially double by the end of the decade and potentially double again under existing authorizations.However, the executive order has also reignited the debate over the balance between energy development and environmental protection. Proponents argue that increased LNG exports will boost the U.S. economy through job creation and increased GDP, while also enhancing global energy security, particularly for allies in Europe and Asia. Critics, on the other hand, express concerns about increased methane emissions, the long-term commitment to fossil fuel infrastructure in the face of climate change, and potential impacts on local ecosystems and communities near LNG facilities.As the industry gears up for a potential boom in LNG exports, stakeholders across the spectrum – from energy companies to environmental groups, policymakers to local communities – are bracing for the wide-ranging impacts of this significant policy shift. The coming months and years will likely see intense activity in the LNG sector, as well as continued debate over the role of natural gas in the global energy transition.
