Energy
Natural Gas Sector Aims to End LNG Terminal Pause Under Trump
Bechtel is building Trains 1-3 of the Rio Grande LNG export terminal in Brownsville, Texas, for developer NextDecade, while permits for similar facilities remain in limbo amid a pause of license reviews by the U.S. Energy Dept. that the energy sector hopes will end under the next administration.
Rendering courtesy NextDecade
The U.S. oil and natural gas industry is pushing for President-elect Donald Trump to end the U.S. Dept. of Energy pause on reviews of liquefied natural gas export terminal projects as part of a “policy roadmap” that the American Petroleum Institute unveiled Nov. 12.
Trade group President and CEO Mike Sommers said on a call with reporters that member firms anticipate that action would come "on day one” of the next administration.
Applications for four LNG export terminals, and two other projects in pre-filing, have been on hold since January when the Energy Dept. paused approvals and said it would study the way officials analyze applications.
Despite the pause on new permits, U.S. LNG exports to Europe have risen since Russia invaded Ukraine.
Institute officials highlighted comments by European leaders such as European Commission President Ursula von der Leyen, who said this month that the European Union could replace LNG sourced from Russia with LNG from the U.S.
But even if the LNG pause and other environmental protections implemented by the Biden administration are not immediately ended, LNG exports to Europe could face additional regulations. Energy Dept. and Environmental Protection Agency officials sent a letter to the commission requesting that it aligns methane limits on LNG imports from the U.S., Reuters reported.
“LNG is very important to long term energy security and American jobs,” Sommers said.
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The trade group's slate of policy goals provided to the incoming administration also calls for permitting reform under the National Environmental Protection Act and Clean Water Act, as well as repealing rules set by the Biden government under the National Environmental Policy Act. (NEPA).
Terminals Under Construction
The U.S. currently has eight LNG export terminals, seven others that have been approved and are under construction, and another 12 that have been approved by federal officials but are not yet being built, according to the Federal Energy Regulatory Commission.
One approved and under construction project is NextDecade Corp.’s Rio Grande LNG facility in Brownsville, Texas. CEO Matt Schatzman told investors earlier this month that construction of three trains led by Bechtel is proceeding, even as it appeals a court ruling that overturned agency authorization of the project.
“The court’s decision will not become effective while the appeals process is ongoing, and we remain committed to taking any and all available legal and regulatory actions to ensure that Phase 1 will be delivered on time and on budget,” he said in a statement.
Another project adding to uncertainty in U.S. export capacity and pricing is shifting completion dates for the estimated $11-billion Golden Pass LNG project in Texas, stemming from a major contractor price dispute earlier this year involving lead contractor Zachry. Darren Woods, CEO of project part owner ExxonMobil, told analysts last week that the project's already delayed late 2025 startup, is likely to extend into 2026.
