Oil & Gas

President Donald Trump's administration granted a liquefied natural gas (LNG) export license to the Commonwealth LNG project in Louisiana, marking the first approval of LNG exports since former President Joe Biden paused them early last year. The approved exports will target markets in Asia and Europe, with Energy Secretary Chris Wright emphasizing that the move strengthens the U.S. economy, supports American jobs, and enhances global energy security. This approval aligns with the U.S.'s broader strategy to reduce Europe's reliance on Russian gas, particularly following Moscow's invasion of Ukraine three years ago.

Commonwealth LNG, which has faced lengthy delays in obtaining the necessary permits, plans to construct a 9.5 million metric ton per annum export plant in Louisiana. The project aims to supply LNG to countries that do not have a free trade agreement with the U.S. CEO Farhad Ahrabi expressed gratitude for the approval, stating that it highlights President Trump's commitment to advancing the American energy sector. The company anticipates making a final investment decision in September 2025, with the project expected to begin LNG production by early 2029.

Meanwhile, other LNG companies, such as Cheniere and Energy Transfer, have announced plans to proceed with their export initiatives, propelled by the green light on LNG approvals. The U.S. LNG export capacity is projected to double by the end of the decade, supported by the earlier permits granted before Biden's freeze. While industry leaders celebrate the move, environmentalists are raising concerns over the potential increase in carbon emissions, and some manufacturing sectors worry that the export boom could lead to higher domestic gas prices.

In a broader effort to bolster the U.S. energy industry, President Trump signed an executive order on Friday establishing a new energy council, headed by Interior Secretary Doug Burgum. The council's mission will focus on increasing U.S. oil and gas production. Trump reiterated his commitment to expanding drilling, with over 600 million acres of offshore federal waters now open for development. He also mentioned his efforts to secure approval for the Constitution natural gas pipeline, which would deliver gas from Pennsylvania’s drilling fields to New York, aiming to lower regional energy prices.