In a move signalling a significant shift in energy policy, President Donald Trump has resumed the approval of liquefied natural gas (LNG) exports, reversing a pause implemented by the previous Biden administration.
The US government has granted a key LNG export licence to the Commonwealth LNG project in Louisiana, marking the first approval since the policy change.
The decision is poised to have a substantial impact on the global energy market, particularly in Asia and Europe.
Energy Secretary Chris Wright emphasised the economic and strategic benefits of the move.
“Exporting U.S. LNG will strengthen our economy, support American jobs, and enhance global energy security,” he stated.
The approval also comes as the U.S. aims to bolster exports to Europe, assisting the region in diversifying its energy sources and reducing reliance on Russian gas in the wake of the Ukraine conflict.
Commonwealth LNG plans to construct a 9.5 million tonnes per annum (mtpa) export plant in Louisiana.
The company anticipates making a final investment decision by September 2025, contingent upon regulatory approval, with initial LNG production slated for early 2029.
Commonwealth CEO Farhad Ahrabi said that these “actions demonstrate that President Trump is prioritising the American energy industry.”
Ahrabi continued, stating: “We are both pleased and grateful to have achieved these important regulatory objectives.”
Other LNG companies, including industry giants Cheniere and Energy Transfer, are also advancing their export plans.
Projections indicate that U.S. LNG exports are set to double by the end of the decade based on previously secured approvals.
However, the expansion of LNG exports has drawn concerns from environmental groups, who warn of a potential increase in carbon emissions.
Some manufacturers also worry about a potential rise in domestic gas prices as a result of increased exports.
President Trump has also established a new energy council, led by Interior Secretary Doug Burgum, with the goal of further expanding US oil and gas output.
Trump highlighted that over 600 million acres of offshore federal waters are now available for oil and gas development.
Additionally, the administration is seeking approval for the Constitution natural gas pipeline, which would transport gas from Pennsylvania to New York, with the aim of lowering energy prices in the region.
The pipeline’s future remains uncertain after its cancellation in 2020 due to opposition.
This announcement follows President Trump’s launch last month of a comprehensive plan to boost overall oil and gas production, signalling a clear commitment to strengthening the U.S. position as a global energy leader.
