President Donald Trump issued an executive order on Monday to resume processing export permit applications for new liquefied natural gas (LNG) projects. This move is part of his broader strategy to increase U.S. energy production and undo climate policies implemented by his predecessor.
The order reverses a freeze on permits for new LNG projects imposed by former President Joe Biden in early 2024. Biden paused the approvals to allow U.S. national laboratories to study the environmental and economic impacts of the growing LNG export industry.
The U.S. set an LNG export record in 2023 and remains the world’s largest exporter of the fuel. Exports are expected to double by 2030 and could double again under existing permits, according to the Energy Department.
However, the permit freeze created uncertainty for several projects in progress, many of which are set to supply Asia and Europe.
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Trump’s incoming energy team, led by Chris Wright, who was nominated to head the Energy Department, will focus on expanding domestic energy production, including LNG and nuclear power. Wright, previously the CEO of oilfield service company Liberty Energy, emphasized the expansion of energy resources during his confirmation hearing.
Trump had promised during his campaign to lift the moratorium on LNG permits. The executive order directs the Energy Department to consider the economic benefits, job creation, and the security interests of U.S. allies and partners when reviewing new export permits.
Japan, a major LNG importer, will monitor the roll-out of the measure. Trade Minister Yoji Muto noted in a press briefing that the policy could impact the global LNG market, where supply and demand are tightly balanced. He said the increased supply could help stabilize the market and improve the predictability of Japan’s LNG procurement.
Editing by Reiner Simanjuntak
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