Trump Administration Grants LNG Export License to Commonwealth LNG Project in Louisiana
The U.S. President Donald Trump’s administration announced on Friday that it has approved a liquefied natural gas (LNG) export license for the Commonwealth LNG project in Louisiana. This marks the first approval of LNG exports since former President Joe Biden halted them early last year. The exports are authorized to go to markets in Asia and Europe.
Energy Secretary Chris Wright, whose agency oversees the approval of LNG shipments, stated that exporting U.S. LNG “strengthens the U.S. economy, supports American jobs, and enhances energy security globally.” The move comes as the U.S. aims to increase LNG exports to help reduce Europe’s reliance on Russian gas following Moscow’s invasion of Ukraine three years ago.
Trump lifted the freeze on LNG export approvals on his second day in office on January 20. The Commonwealth LNG project, which has been waiting longer than any other company for its permit, plans to build a 9.5 million metric ton per annum export plant in Louisiana to serve countries without a free trade agreement with the U.S.
“Today’s actions demonstrate that President Trump is prioritizing the American energy industry, and we are pleased and grateful to have achieved these important regulatory objectives,” said Commonwealth CEO Farhad Ahrabi. The company anticipates making a final investment decision in September 2025, subject to regulatory approval, with the first LNG production expected in early 2029.
Other LNG companies, such as Cheniere LNG.N and Energy Transfer, are also moving forward with their export plans. U.S. LNG exports are projected to double by the end of the decade based on approvals granted before Biden’s pause, raising concerns among environmentalists about potential carbon emissions and fears among manufacturers and fuel-dependent industries about domestic gas price spikes.
In addition to granting the LNG export license, Trump signed an executive order establishing a new energy council led by Interior Secretary Doug Burgum. The council aims to expand U.S. oil and gas output, with Trump highlighting the opening of over 600 million acres of offshore federal waters for oil and gas development.
The President also mentioned efforts to secure approval for the Constitution natural gas pipeline, intended to transport gas from Pennsylvania’s drilling fields to New York and lower energy prices in the region. The pipeline was canceled by Williams Cos in 2020 due to opposition from New York politicians and environmentalists, leaving its approval uncertain.
(Source: Reuters – Reporting by Jarrett Renshaw, Timothy Gardner, and Curtis Williams in Houston; edited by Deepa Babington and Nia Williams)