President Donald Trump has lifted a moratorium on new US licenses to export liquefied natural gas, making good on a campaign pledge to rescind the measure enacted by his predecessor, according to Bloomberg.
The directive, included in a broad executive order on energy, orders the Energy Department to resume reviewing applications for new permits. That was halted by former president Joe Biden in January 2024 while his administration studied the climate, economic and national security implications of increasing US exports of the fuel.
The study, released last month, found increased exports would raise natural gas prices for US consumers and increase global emissions, a potential roadblock for speedy permits approvals granted by the Energy Department.
Trump promised during his election campaign to immediately lift the moratorium, which has disrupted plans for multi-billion-dollar export projects by Venture Global LNG Inc., Energy Transfer LP and Commonwealth LNG.
In his order, Trump directed the Energy Department to consider the economic and employment benefits of approving new export permits, as well as the “impact to the security of allies and partners.”
Japan, a major LNG importer that already buys supply from the US, will monitor the roll-out of the measure, said Trade Minister Yoji Muto in a regular press conference on Tuesday. “We recognize that it could have an impact on the global LNG market, where supply and demand are structurally tight, and that it could increase supply and contribute to stabilizing the market,” he said. “We believe that this will also increase the predictability of Japan’s LNG procurement.”