U.S. LNG Export Study Announcement

By Timothy Gardner

WASHINGTON (Reuters) – The U.S. will release a draft study as soon as Tuesday on exports of liquefied natural gas (LNG). This review is unlikely to be finalized before President Joe Biden leaves office, according to two industry sources.

In January, Biden paused the Department of Energy's approvals for U.S. LNG exports to major consumers in Asia and Europe to conduct a study on the environmental and economic impacts of the growing industry.

President-elect Donald Trump opposed this pause and has stated he would act swiftly to reverse it. Trump's transition team plans to introduce an energy package shortly after he takes office on January 20, aiming to approve export permits for new LNG projects.

The Energy Department has yet to respond to requests for comments.

The forthcoming study is expected to provide scenarios warning about potential price impacts on domestic natural gas and the environmental effects of the U.S. LNG export boom, as per the anonymous industry sources.

Brad Crabtree, an assistant secretary at the department, mentioned in a recent congressional hearing that the study will include a 60-day comment period.

However, proponents of LNG have expressed concerns that if the study isn't finalized before the Trump administration takes over, it might be harder to use the study as evidence in legal actions against LNG projects.

LNG and natural gas producers criticized Biden's pause as an election-year maneuver that jeopardized energy security for allies and partners, especially as Europe seeks to diminish its reliance on Russian gas following Moscow's invasion of Ukraine.

The administration has countered that this pause does not affect super-chilled gas exports, which are projected to more than double by the end of the decade based on already approved shipments. As of 2023, the U.S. has become the world's largest LNG exporter.