HomeNewsCompanies most affected by U.S. pause on LNG export permits

Companies most affected by U.S. pause on LNG export permits

1/29/2024

(Reuters) - U.S. President Joe Biden's administration on Friday announced a pause on pending and future permits to export LNG to non-Free Trade Agreement countries until the Department of Energy finishes a new review of climate impacts.

Many companies have been waiting for the U.S. to green light licenses to export LNG to their chosen destinations as demand for the super-chilled gas continues to rise, especially in Europe. The following is a list of companies potentially impacted by the announced suspension on new export-permit approvals:

- Commonwealth LNG has been waiting since November 2022 for approval for its 9.3 MMtpy LNG export facility in Cameron, Louisiana. The firm has reached agreements for just about 50% of capacity and was targeting a final investment decision this year.

- Sempra's Port Arthur, Texas, LNG's trains 3 and 4, capable of producing up to 13.5 mtpa, applied for authorization from DOE in September 2023. The facility's Phase 2 represents an expansion on the already producing first phase.

- Energy Transfer re-applied for an export permit for its Lake Charles LNG facility in Louisiana after its original permit expired without completing construction. It sought a new non-FTA license in August 2023.

- Glenfarne Group's Magnolia LNG, which expects to produce 8.8 mtpa of LNG at a facility in Louisiana, also refiled its permit, but the company has not provided details on dates. The project has not moved forward.

Two other LNG projects are awaiting U.S. Federal Energy Regulatory Commission (FERC) approvals, which must be received before the DOE will consider an export permit. The soonest FERC could vote would be in February. If approved by FERC, the two also would also be subject to the export-permit moratorium.

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