The US Department of Energy (DOE) has removed a regulatory barrier that required liquefied natural gas (LNG) projects to start export within seven years of receiving regulatory approval.
DOE said in a statement on Tuesday it has rescinded a Biden-era policy statement that required authorized LNG exporters to meet stringent criteria before the agency would consider a request to extend a commencement date for an approved project.
“This policy statement added unnecessary red tape to the extensive LNG export permitting process and made it more difficult for operators of approved projects to obtain necessary extensions,” it said.
DOE’s authorizations for natural gas exports to non-free trade agreement countries usually require exporters to begin exports within seven years of authorization to allow time for the financing and construction of the associated export facility.
While many projects are able to commence exports within seven years of obtaining their DOE authorization, authorization holders can request additional time to begin exports based on the facts and circumstances of their project development.
In April 2023, DOE issued a policy statement that required that projects seeking a commencement deadline extension must both be under construction and be able to demonstrate that extenuating circumstances outside the authorization holder’s control prevented the commencement of exports within seven years.
“With this action, DOE is rescinding the policy that required those criteria to be met before considering a commencement extension request and will again evaluate such requests on a case-by-case basis,” DOE said.
DOE noted in the statement that the rescission of this 2023 policy statement marks the sixth LNG-related issuance from DOE since President Trump took office in January.
Most recently, Venture Global LNG received conditional non-FTA approval from DOE for its proposed CP2 LNG project in Louisiana.
