Unleashing American Energy Executive Order: Impact on LNG Exports

In the Executive Order (EO) “Unleashing American Energy,” dated January 20, 2025, President Trump instructed the secretary of energy to restart reviews of applications for approvals of exports of liquified natural gas (LNG) as expeditiously as possible. Additionally, in assessing the “public interest” to be advanced by any export, the secretary of energy was instructed to consider the economic and employment impacts to the United States and the impact to the security of allies and partners that would result from granting the application.

(On a separate, related note, the “Unleashing Alaska’s Extraordinary Resource Potential” EO, dated January 20, 2025, directed the leaders of all federal departments and agencies to prioritize the development of Alaska’s natural gas resources and LNG exports—including the sale and transportation of Alaskan LNG to other US regions and allied countries in the Pacific—while taking into account the associated economic and national security benefits.)

Summary

Lifting the Biden LNG Pause

On January 26, 2024, the Department of Energy (DOE) under the Biden Administration announced a temporary halt on making decisions about LNG exports to countries without a free trade agreement (FTA) with the United States, citing the need to update the DOE’s analysis of authorizations (the “Biden LNG Pause”). The DOE believed that the previous analysis no longer adequately addressed factors such as the potential rise in energy costs for US consumers and manufacturers, as well as the latest evaluation of greenhouse gas emissions. The US District Court for the Western District of Louisiana granted a Motion for Preliminary Injunction at the request of Louisiana and other states, temporarily halting the Biden LNG Pause until the case is resolved.¹ This decision technically removed the legal obstacle preventing the DOE from considering new LNG export authorizations to non-FTA countries. Nonetheless, the DOE remained cautious in issuing new non-FTA LNG export authorizations, and its approach to those applications was still influenced by the above concerns.

The Unleashing American Energy EO directs the DOE to promptly resume the review of applications for LNG exports. According to a DOE Statement dated January 21, the DOE has ended the pause on LNG export approvals and returned to regular procedures, instructing the Office of Fossil Energy and Carbon Management to resume the evaluation of pending applications for exporting American LNG to non-FTA countries in accordance with the Natural Gas Act (NGA).

Additionally:

• The DOE has extended the deadline for public comments on its 2024 LNG Export Study examining the impact of LNG exports on the domestic economy; comments are now due March 20, 2025.
• On February 5, 2025, the new secretary of the DOE “Unleash[ed] [a] Golden Era of American Energy Dominance”, setting priorities for the DOE, which include returning to regular order on LNG exports, and confirming that the DOE has resumed consideration of pending applications to export American LNG to non-FTA countries according to the NGA.
• On February 14, 2025, the DOE issued a conditional authorization for the export of LNG to non-FTA countries by the Commonwealth LNG project in Cameron Parish, Louisiana.  A subsequent final order will be informed by the 2024 LNG Export Study proceeding, as well as any additional issues or considerations examined in compliance with DOE’s obligations under NGA section 3(a) and NEPA. This marks the first major US LNG export authorization action to non- FTA countries after the lifting of the Biden LNG Pause.

Shifting Focus in Considering “Public Interest” for Non-FTA Applications

The NGA sets forth two standards for evaluating LNG export applications based on the destination countries: Applications to export LNG to FTA countries are automatically deemed in the “public interest” while the DOE must assess if applications for exporting to non-FTA countries are in the “public interest.” NGA section 3(a) does not define “public interest” or identify criteria that must be considered in evaluating the public interest. Over the years, the DOE criteria for determining the public interest in granting non-FTA LNG export permits have evolved, driven by the need to balance energy security, economic interests, and environmental considerations and adapting to changes in the global energy landscape.

Initially, the DOE applied a relatively conservative test, assessing whether the export would negatively impact the domestic supply of natural gas. “Public interest” was largely seen through the lens of the domestic need for the LNG proposed to be exported, whether the proposed exports pose a threat to the security of domestic natural gas supplies, market competition, and price stability for consumers.

Subsequently, the landscape for LNG export authorizations continued to evolve with the incorporation of a variety of economic, international, and environmental considerations, and the DOE focused on aligning with broader energy and climate goals, especially as the US had pledged to reduce carbon emissions.

Under the Unleashing American Energy EO, the DOE’s “public interest” assessment criteria has undergone significant refinement. It now places emphasis on the economic and employment benefits of LNG projects, as well as their impact on the security of US allies and partners, shifting the focus away from prioritizing climate impact and other environmental concerns.

Conclusion

The Unleashing American Energy EO sets a clear directive for DOE to prioritize LNG exports as a means to bolster the US economy, create jobs, and enhance the security of allies and partners. By lifting the Biden LNG Pause and increasing focus on the economic and employment benefits related to LNG projects, the Unleashing American Energy EO seeks to position the US as a dominant player in the global energy market.

¹ Louisiana v. Biden, No. 2:24-CV-00406, 2024 WL 3253103 (W.D. La. July 1, 2024)