Biden Policy Shift Divides US LNG Industry

Copyright © 2023 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.
Andronos Haris/Shutterstock

A new Biden administration policy faces questions as to whether it will achieve its stated purpose of accelerating US LNG exports or do the opposite. The US Department of Energy (DOE) decided last week to stop granting extensions for US LNG export approvals. That puts the onus on project developers to construct and begin exporting gas within a strict seven-year timeline — with few exceptions. A US LNG export project, in addition to environmental approval from the US Federal Energy Regulatory Commission (FERC), needs approval from DOE to export to countries with which the US does not have a free trade agreement (FTA). After non-FTA approval is issued, DOE rules state that a developer has seven years in which to construct the project and begin exporting to world markets. But DOE now will no longer issue extensions beyond the original seven-year deadline. There are two exceptions — the project has already begun construction, or if it has not, it is due to extenuating circumstances beyond the company's control. The DOE said it aims to reduce the backlog of projects that have approval but have not moved forward. The idea is to clear the regulatory path for more viable projects, thus accelerating US LNG exports.

Policy and Regulation, LNG Projects, LNG Supply
Wanda Ad #2 (article footer)
Much is riding on a second-half demand boom to rally oil prices, but early signs indicate it's off to a slow start.
Thu, Jun 8, 2023
Brussels will launch its second joint gas procurement tender despite market participants still being unsure over its usefulness as a trading tool.
Fri, Jun 9, 2023
The deputy prime minister set out plans to expand infrastructure that will boost Russia's oil and gas exports to the Asia-Pacific region.
Thu, Jun 8, 2023