Permit Actions Coming in Quick for U.S. LNG

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The Trump administration has again offered a permit extension for liquefied natural gas exports.

"While the previous administration pursued a strategy of energy subtraction, I am proud to be working with President Trump to advance a strategy of energy addition--embracing all forms of energy that are affordable, reliable and secure," U.S. Energy Secretary Chris Wright said Monday.

Wright said the government awarded an export permit extension for Delfin LNG, an offshore LNG export terminal some 40 nautical miles from the coast of Louisiana. An extension for existing permits for trade to countries without a U.S. free-trade agreement was necessary because of construction issues during the COVID-19 pandemic.

The project has been through various stages of advanced planning since 2015, including receiving its Final Environmental Impact Statement (FEIS) in November 2016 and a positive Record of Decision from the US Maritime Administration (MARAD) in March 2017.

Delfin Midstream (Houston, Texas) is owned by Fairwood Peninsula, Talisman Global Alternative Master, L.P. and Talisman Global Capital Master, L.P. Construction is underway for a floating LNG vessel that would be able to export up to 1.8 billion cubic feet of gas in the liquid form each day.

A final investment decision is expected later this year, and exports are expected by June 2029. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for the Delfin project report.

Delfin marks the second facility to get a permit extension from the Trump administration so far this year, after Golden Pass. Also, Commonwealth LNG received a new permit earlier this year. Subscribers can read detailed project reports on Commonwealth LNG and Golden Pass.

Former President Joe Biden ordered a pause on new LNG permits while his administration studied the potential for emissions up and down the supply chain.

Natural gas is made primarily of methane, which is a potent greenhouse gas with a warming potential far greater than carbon dioxide. The process of cooling a gas to the point that it condenses to a liquid is also energy intensive.

A court had suspended Biden's action. To start his second, non-consecutive term in office, President Donald Trump used an executive order to overturn the suspension altogether.

The U.S. exported its first batch of LNG in 2016 and surpassed Australia and Qatar in 2022 to become the world leader in exports. The government expects exports to average 14 billion cubic feet per day (Bcf/d) and increase to 16 Bcf/d by next year.

Data from IIR Energy show total exports are already at the level expected for 2026. The eight operational terminals were working at 97% of their peak capacity on Monday, exporting around 16.1 Bcf/d. The Sabine Pass terminal in Louisiana, operated by Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas), is the largest by volume, with a peak design capacity of 4.56 Bcf/d, though it will eventually be surpassed by expansions to the Plaquemines facility in Louisiana. Operated by Venture Global LNG (Arlington, Virginia), Plaquemines will eventually reach 6 Bcf/d in export potential.

More LNG leaving U.S. shores could upend the balance between supply and demand. For January, the last full month for which the government has data, natural gas consumption in the residential and commercial sectors averaged 50.6 Bcf/d, a13% increase over the five-year average. For the power sector, consumption averaged 37.6 Bcf/d, some 20% above the five-year average.

IIR Energy data show the U.S. produced 104 billion cubic feet of natural gas as of Sunday, leaving extra capacity at a premium. But the expectation for an increase in LNG capacity shouldn't tip the balance in the domestic market anytime soon as new suppliers await other permitting and funding.

Should bullish trends continue, shippers may be looking to increase their prices to capitalize on the market. The U.S. Department of Energy reported in December that domestic gas supplies are enough to meet global demand and domestic needs.

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).