President Donald Trump has fulfilled a key campaign promise by lifting a moratorium on new U.S. licenses to export liquefied natural gas (LNG), reversing a measure put in place by the Biden administration. The executive order, which focuses on energy policy, directs the U.S. Department of Energy (DOE) to resume reviewing applications for LNG export licenses, effectively allowing new projects to proceed after a pause in permitting that started in January 2024.
Under the Biden administration, a moratorium on LNG exports was imposed while the government conducted a study on the climate, economic, and national security impacts of increasing U.S. LNG exports. The study, which was released last month, raised concerns that expanding exports would likely lead to higher natural gas prices for U.S. consumers and contribute to global emissions. These findings created a potential obstacle to rapid approvals for LNG export permits from the Energy Department.
Despite these concerns, President Trump vowed during his campaign to reverse the moratorium, arguing that lifting the ban would help revive the U.S. energy sector, benefit the economy, and restore the nation’s standing as a global energy powerhouse. The moratorium had created significant disruption for multi-billion-dollar LNG export projects, such as those planned by Venture Global LNG Inc., Energy Transfer LP, and Commonwealth LNG, which had been awaiting approval for their projects.
A federal judge had already lifted the freeze in July 2024, following a lawsuit filed by 16 states, which argued that the moratorium violated federal law. However, the Energy Department was not required to approve new export permits, which are needed for shipping U.S. natural gas to countries without free-trade agreements with the U.S.
The lifting of the moratorium now paves the way for companies to resume seeking permits for LNG export projects, and analysts expect this move to boost investment and job creation in the energy sector. However, concerns over the potential economic and environmental impacts of increased natural gas exports will continue to be a point of debate, especially as the U.S. navigates its energy transition amid growing global demand for cleaner sources of energy.
As the U.S. works to reassert itself as a leader in the global LNG market, the policy change marks a significant shift in the country’s approach to energy exports under the Trump administration.
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