Note: Single-source report; awaiting corroboration.
The U.S. Department of Energy (DOE) has removed regulatory barriers for liquefied natural gas (LNG) exports by rescinding an April 2023 policy statement that imposed strict criteria for extending commencement dates of LNG export projects. Previously, exporters had to show their projects were under construction and that circumstances beyond their control prevented exports within seven years of authorization before DOE would consider extension requests.
The rescinded policy complicated the permitting process and made it harder for authorized LNG exporters to secure necessary extensions. The DOE will now return to a case-by-case review of extension requests, without requiring exporters to meet stringent criteria in advance. This policy reinstates greater flexibility for developers to request more time based on the specifics of their LNG projects.
DOE approvals for natural gas exports to non-free trade agreement countries usually require shipments to begin within seven years to allow for project financing and construction. However, holders have been able to request extensions past this period if needed. The agency’s recent move aims to restore policies that reduce unnecessary regulatory burdens on LNG export projects.
Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management, said the removal of restrictive policies addresses challenges from past administration actions and helps facilitate continued U.S. LNG exports worldwide.