Trump Revokes Biden's Pause On Gas Exports
President Donald Trump signed an executive order Monday rescinding former President Joe Biden’s policy pausing permitting of new gas export facilities.
The move is mostly symbolic, but signals that — as expected — the new administration plans to reject the findings of recently released federal research warning that ramping up overseas sales risked raising prices for Americans.
Last January, Biden paused new federal permits for export terminals designed to ship liquefied natural gas — a version of the methane fuel superchilled to liquid form for easier transport via tankers — while the Department of Energy conducted a study into the effects of increasing shipments of American gas to international buyers beyond already historic levels.
The policy only affected new applications, so the new LNG projects under construction — enough to double U.S. export capacities by 2028 — were allowed to continue.
By April, the U.S. vaulted past Qatar and Australia to seize the top spot as the world’s No. 1 exporter of LNG. In July, a federal judge halted the Biden administration’s pause. By September, federal agencies resumed permits on new LNG terminals.
Last month, the Energy Department released its findings. The results painted a dire picture of what might happen if LNG exports more than double throughout the rest of this decade. With so much American gas heading to buyers in Asia and Europe, domestic prices would rise, as would planet-heating emissions.
While methane, the primary ingredient in natural gas, does not stay in the atmosphere as long as carbon dioxide, the greenhouse gas nevertheless traps much more heat during its first few decades circulating in the Earth’s gaseous outer layer.
While no longer in effect, Trump’s move to lift the LNG permitting pause signals that his administration will reject the research from the Energy Department’s nonpartisan career scientists.
Following the study’s release, the Industrial Energy Consumers of America, a trade association representing U.S. manufacturers, called on Congress to maintain limits on LNG exports to preserve affordability.
The study, published on Dec. 17, is subject to a 60-day comment period, giving the new administration power over whether the findings remain on the federal books.
At his Senate confirmation hearing last week, Chris Wright, Trump’s pick to lead the Energy Department, dismissed concerns over rising prices from LNG exports, arguing that increased overseas sales would lead to higher domestic production.
In a call with reporters last week, the American Petroleum Institute, the nation’s leading lobby for the oil and gas industry, listed eliminating the LNG pause as a top priority for the new administration.