Despite recent authorizations, the pause on U.S. liquefied natural gas (LNG) export permits remains in place, according to the U.S. Department of Energy (DOE). The authorization of New Fortress Energy to export up to 1.4 million tonnes per year of LNG does not signal the end of the Biden administration’s review process.
### Continued Review Process
The DOE’s decision on September 3 to allow New Fortress Energy to export up to 0.4 billion cubic feet per day (bcfd) of U.S.-sourced natural gas as LNG to non-Free Trade Agreement (FTA) countries for a five-year term maintains the status quo. This authorization does not increase the total volume of LNG that the New Fortress Energy Altamira floating LNG export platform can re-export but does provide approximately a 3% increase in available exports to non-FTA countries, which include allies in Europe.
### Background of the Pause
In January 2024, the Biden administration introduced a temporary pause on pending decisions to export LNG. This pause was implemented to give the DOE time to update its evaluation criteria to more comprehensively consider climate and economic impacts. The existing assessments of LNG exports, last updated in 2018, were deemed insufficient to address current and future concerns.
### Impacts on Industry and Projects
The pause has significant implications for the U.S. LNG export industry. It did not affect the eight LNG terminals already in operation or the ten projects that already hold DOE export authorizations and are under construction. However, it threatens future U.S. LNG export development by delaying regulatory decisions and potentially increasing the complexity of the review process for pending and future projects.
Industry groups and attorneys general from 16 Republican states sued the White House over the pause. A federal court judge in Louisiana subsequently blocked the pause, but the practical effects of this ruling remain unclear.
### New Fortress Energy Authorization
New Fortress Energy