Dive Brief:
- The U.S. Department of Energy has recently authorized an extension for exporting liquefied natural gas (LNG) for the Golden Pass LNG project. This project is a joint effort between QatarEnergy and ExxonMobil and is currently being built in Sabine Pass, Texas.
- This marks the third LNG authorization granted by the DOE since President Trump took office, as the Biden administration had previously paused export approvals.
- President Trump aims for the U.S. to achieve “energy dominance,” and increasing fossil fuel exports is part of his strategy. However, consumer and environmental advocates warn that unlimited gas exports could raise domestic gas prices by over 30%, increase electricity costs, and hinder progress in reducing emissions.
Dive Insight:
Golden Pass is anticipated to start LNG exports by the end of this year, becoming the ninth major export terminal in the United States, according to the DOE.
Secretary of Energy Chris Wright stated that exporting natural gas helps support American jobs, enhances national security, and cements America’s status as a global energy leader.
The DOE’s recent decision follows two actions taken in February: it approved an export permit for Commonwealth LNG and lifted restrictions for using LNG as a fuel source for ships transporting it.
Tala Goudarzi, acting principal deputy assistant secretary of the Office of Fossil Energy and Carbon Management, said, “Golden Pass was the first project given approval for exports to non-free trade agreement countries during the first Trump Administration, and it is exciting that it is close to delivering its first LNG.”
A study released by the DOE last December indicated that increased LNG exports could lead to higher electricity and natural gas prices for U.S. consumers, as well as rise greenhouse gas emissions and other costs. Former Energy Secretary Jennifer Granholm noted that U.S. LNG exports have significantly increased and could continue to rise in the coming years.
Granholm highlighted that the volumes already permitted for export are equivalent to about half of the nation’s total natural gas production. The Sierra Club’s Cathy Collentine criticized the administration’s approach, stating, “Domestically, energy prices will rise, local fishing industries will be harmed, our air and water will suffer, and public health will be at risk. It seems Trump is prioritizing gas CEOs’ profits over the welfare of ordinary Americans.”