Golden Pass LNG Terminal Gets its Export Permit Extension

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(Editor's note: This article has been amended for clarification.)

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Making good on pledges to ensure U.S. energy dominance, the federal government on Wednesday approved an export permit extension for the Golden Pass LNG terminal at Sabine Pass, Texas.

"Exporting U.S. LNG (liquefied natural gas) supports American jobs, bolsters our national security and strengthens America's position as a world energy leader," Energy Secretary Chris Wright said. "President Trump has pledged to restore energy dominance for the American people, and I am proud to help deliver on that agenda with today's permit extension."

Golden Pass already had received a U.S. Department of Energy (DOE) permit to export LNG to non-Free Trade Agreement (FTA) countries in 2017. It was one of the first LNG export projects to receive such approval.

Golden Pass needed an extension of that approval because it had not begun exporting LNG under the terms of the permit. Under those terms, it needed to begin exports by September 30, 2025, a deadline it was unlikely to meet.

Former President Joe Biden had suspended new permits for LNG while the administration studied the potential emissions up and down the supply chain. President Donald Trump reversed that order in one of his first acts of office in January.

The Biden administration's pause did not impact the execution of construction activities for the $10 billion project, as Golden Pass already had received DOE authorization. Construction began in 2019, during Trump's first term as president. However, the project ended up in need of an extension of the authorization from the DOE due of construction delays and issues with one of its original engineering, procurement and construction (EPC) providers.

Federal regulators in October gave the joint venture partners a three-year extension to finish building the Golden Pass LNG plant. The extension was granted due to delays caused when lead construction contractor Zachry Holdings filed for bankruptcy in March 2024, according to a Federal Energy Regulatory Commission filing.

The U.S. delivered its first-ever batch of LNG in 2016. In 2022, it passed Australia and Qatar to become the largest LNG exporter in the world.

Exports in 2022 averaged 10.8 billion cubic feet per day (Bcf/d). The level should be closer to 14 Bcf/d this year, though exports have already exceeded that. On Tuesday, the U.S. exported 15.4 Bcf/d, with most of that coming from the Sabine Pass terminal, operated by Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas).

Counting a decision to reverse a ban on LNG as a bunker fuel for the shipping industry, the Trump administration said the decision on Golden Pass marks its third on the super-cooled form of natural gas since January.

The administration in late February gave an export license to Commonwealth LNG (Houston, Texas) for a planned facility in Louisiana. Commonwealth is working to develop a facility that would have a design capacity of about 1.2 Bcf/d in LNG exports. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more by viewing the project report.

A special permit is needed to deliver LNG to countries that do not have a free-trade agreement with the U.S. It's unclear how Trump's trade policies would clash with his energy ambitions, however. He ordered tariffs on Canada, China and Mexico this week, partially undoing his own trade deals from his first term in office.

Owned by QatarEnergy (Doha, Qatar) and Exxon Mobil Corporation (NYSE:XOM) (Spring, Texas), Golden Pass could be exporting as soon as this year. At its peak, it would be the second-largest LNG export facility by volume behind Sabine Pass, which has a design capacity for 4.5 Bcf/d. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for the Golden Pass project report.

LNG exports could eat into domestic supplies and put a premium behind the price of Henry Hub, the U.S. benchmark for the price of natural gas. Henry Hub averaged $2.20 per million British thermal units (MMBtu) last year, but it's expected to be closer to $4 this year. It's already trading near $4.40 per MMBtu.

Apart from Commonwealth and Golden Pass, new export capacity came in December with the start of the Plaquemines facility in Louisiana, operated by Venture Global (NYSE:VG) (Arlington, Virginia).

Plaquemines has yet to reach full capacity, however. Of the eight operational LNG export terminals, only two were operating close to peak capacity as of Tuesday. Subscribers can learn more by viewing the project reports.

Natural gas production as of Tuesday was 103.7 Bcf/d, a level that was curtailed by cold winter weather in Texas. Coinciding with the implementation of tariffs, Canadian exports of natural gas to the U.S. are down as well.

Subscribers can click here for the project reports mentioned in this article and click here for the plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).