DOE: Pause on US LNG export permits remains despite New Fortress authorization

### The U.S. Department of Energy’s Continued Pause on LNG Export Permits Despite New Authorization for New Fortress Energy

The recent authorization by the U.S. Department of Energy (DOE) to New Fortress Energy to export liquefied natural gas (LNG) has brought to light the ongoing regulatory pause on LNG export permits. This decision, while allowing for the continued operation of specific export facilities, does not signal the end of the pause initiated by the Biden administration in January. This article delves into the implications of this pause and its impact on the LNG export industry.

#### The New Authorization

On September 3, 2024, the DOE authorized New Fortress Energy to re-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 export term. This authorization specifically targets the Altamira floating LNG export platform located off the coast of Mexico in the Gulf of Mexico. The platform can produce 1.4 million metric tons of LNG annually and has already begun operation, having shipped its first partial cargo in August.

#### Ongoing Regulatory Pause

The January 2024 announcement by the Biden administration to pause LNG export authorizations was intended to provide the DOE time to enhance its review process. This review aims to more robustly consider the climate and economic impacts of increasing LNG exports. The pause did not affect the operation of existing LNG terminals, but it placed future projects in regulatory limbo.

Industry groups and attorneys general from 16 Republican states vehemently opposed the pause, leading to a federal court ruling in Louisiana blocking the pause on LNG export permits. However, the legal injunction does not automatically reinitiate the approval process for pending applications, and the DOE has appealed this decision to the U.S. Court of Appeals for the Fifth Circuit.

#### Implications and Future Directions

The DOE’s decision to grant the

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