U.S. LNG Developers Confident in Trump Administration

By Curtis Williams

HOUSTON (Reuters) – U.S. liquefied natural gas (LNG) developers awaiting permits for new export projects this week expressed confidence that President-elect Donald Trump will ease the path for their multi-billion-dollar expansion plans.

Their optimism is bolstered by Trump's commitment to end an expanded Department of Energy (DOE) review that has delayed new export permits. In contrast, President Joe Biden had paused new non-FTA (Free Trade Agreement) export permits and requested the DOE to assess the cumulative effects of new LNG projects on climate and the economy more comprehensively.

Environmental groups are determined to maintain pressure to block new plants.

Marshall McCrea, co-CEO of LNG and pipeline operator Energy Transfer (NYSE:ET), stated that Trump's victory guarantees the nation will have “some rational, reasonable people running this country.” He believes this change of administration promises financial approval for its $13-billion LNG-export facility in Louisiana, as communicated in a recent quarterly call.

Commonwealth LNG, developing a $10-billion facility near Cameron, Louisiana, has been waiting for an LNG-export permit for more than 18 months and looks forward to the approval of its non-FTA authorization.

Sempra LNG, planning to construct a second phase of its Port Arthur LNG in Texas, anticipates that the Trump victory will lead to an export permit by June. “We have growing confidence in getting the permits we need for Port Arthur Phase 2 in the first half of next year,” said Sempra CEO Jeffrey Martin.

Environmental groups, which influenced the Biden administration's reevaluation of the broader impact of LNG exports, vow to continue challenging the permits. “We will do everything we can to fight back against attempts to trample on safeguards meant to protect people from polluted water and air,” said Mahyar Sorour, director of the Sierra Club's beyond fossil fuels policy.

Venture Global LNG, still awaiting a non-FTA export permit for its Calcasieu Pass 2 plant in Louisiana, is optimistic about collaborating with the incoming administration.

The anticipated relaxation of some LNG regulations indicates a clear runway for developers, according to Fred Hutchison, CEO of the trade group LNG Allies.