The U.S. Department of Energy has announced the elimination of regulatory hurdles affecting U.S. liquefied natural gas (LNG) exports. This move involves the rescission of a policy statement from the Biden administration. It had set stringent requirements for authorized LNG exporters seeking to extend the commencement date of their approved projects. The Department described this policy as an unnecessary impediment in the LNG export permitting process.
Tala Goudarzi, the Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management, expressed support for this change. "I am glad to sign this action to return to common-sense policy on reviewing commencement date extension requests. Throughout the past few years, many factors, including the actions of the prior administration, have made it unnecessarily rigid to obtain and maintain an authorization to export U.S. LNG to non-free trade agreement countries," Goudarzi stated.
By rescinding the policy from April 2023, the Department of Energy intends to simplify the process for LNG exporters. The previous requirements included proving that the associated project was under construction and that circumstances beyond the holder’s control delayed exports within seven years. With this change, the Department will resume its previous practice of evaluating each extension request on an individual basis.
Historically, the Department's authorizations have allowed exporters seven years to start their operations. While many complete this within the timeframe, holders can request more time if their project development circumstances necessitate it. The rescinded 2023 policy had demanded proof of construction and extenuating circumstances to accommodate a deadline extension.
The Department's action continues a series of LNG-related issuances since President Trump took office. These include export approvals to various projects, such as Commonwealth LNG and approvals affecting the use of LNG as bunkering fuel.
