On his first day in office, Trump aimed to enhance the LNG sector, initiating projects that would significantly increase U.S. LNG capacity. While Biden paused new permits for environmental reviews, previously approved projects continued, allowing U.S. exports to thrive. Upcoming facilities in Louisiana and Texas are set to boost capacity, and several additional projects are expected to advance, potentially adding 100 million tons to export capabilities, despite regulatory hurdles.
Trump’s Energy Policy and the LNG Industry
On his first day in office, Mr. Trump set his sights on the LNG sector with a decree aimed at boosting energy production across the United States. In contrast, Mr. Biden put a hold on new permit grants while a comprehensive study was conducted to evaluate the environmental and economic implications of the rapidly growing export sector. This study was released in December, revealing that American LNG production was anticipated to more than double despite the moratorium.
Prior to Mr. Biden’s suspension of new permits, several projects had already received approval, which would elevate U.S. LNG capacity from approximately 90 million tons per year (MTPA) to a remarkable 200 MTPA. These ongoing projects remained unaffected by the moratorium. The new permits initiated during the Trump administration are expected to bolster export capacity by 2030, as the construction of LNG facilities typically spans several years. The United States has already claimed the title of the world’s largest LNG exporter, with 88.3 million tons of super-cooled gas shipped in 2024 alone. This year, three new plants are projected to contribute nearly 50 MTPA to U.S. capacity.
Upcoming LNG Projects in the Pipeline
The Venture Global Plaquemines LNG plant in Louisiana is poised to add 20 MTPA at its peak, while Cheniere Energy’s phase 3 expansion in Corpus Christi, Texas, is set to contribute an additional 10 MTPA. Both facilities are scheduled to commence LNG production in December 2024 and are currently under construction. Additionally, the Golden Pass LNG Texas project, a joint venture between ExxonMobil and QatarEnergy, which has experienced significant construction delays, is expected to begin LNG production in 2025, with a maximum capacity of 18.1 MTPA.
Several projects that were impacted by the moratorium on new permits are now positioned to advance thanks to Trump’s recent decisions, potentially adding 100 million tons to U.S. export capacity. In Texas, key projects include:
- Port Arthur Expansion by Sempra Infrastructure (13 MTPA)
- Corpus Christi 8 and 9 by Cheniere Energy (3 MTPA)
In Louisiana, the following projects are on the horizon:
- Commonwealth LNG (9.5 MTPA)
- Venture Global LNG’s CP2 Project (20 MTPA)
- Energy Transfer’s Lake Charles LNG facility (15.5 MTPA)
- Glenfarne Group’s Magnolia LNG (8.8 MTPA)
- Gulfstream LNG (4.2 MTPA)
- Argent LNG (25 MTPA)
Moreover, there are existing plants that possess DOE export licenses but require permits to enhance their capacity. This includes Venture Global LNG’s Plaquemines and Calcasieu Pass plants, as well as Kinder Morgan’s Elba Island LNG facility.
Furthermore, several projects in the early stages of development stand to gain from the reinstatement of the permitting process. Notable mentions include:
- EOS FLNG and Barca LNG in Texas
- CE FLNG, Main Pass Energy Hub FLNG, and Monkey Island LNG in Louisiana
In Mexico, the Mexico Pacific LNG project in Saguaro aims to liquefy American gas and will require a DOE permit. Notably, the Altamira LNG plant, operated by New Fortress Energy on Mexico’s Pacific coast, is the sole project to secure an export license to countries not covered by free trade agreements during the permitting pause.