U.S.: What Freezes New LNG Exports Means

Yesterday (20.1.25) their president, the moratorium on the new American LNG export licences, implemented his election commitment to cancel the measure introduced by his predecessor. The directive US President Trump, which is included in a broad executive decree on energy, orders the Energy Ministry to review applications for new permits. This had been stopped by former president Joe Biden in January 2024, while his government was studying impacts on climate, economy, and national security from increasing American fuel exports. CORVERSE The study, published last month, found that increased exports would increase gas prices for US consumers and increase global emissions, which is a potential obstacle to the rapid approval of permits by the Ministry of Energy. Trump promised during his campaign to immediately lift the moratorium, which has disrupted plans for multi-billion dollar export projects by Venture Global LNG, Energy Transfer LP and Commonwealth LNG. In his decree, Trump instructed the Energy Ministry to consider the economic benefits and benefits for employment from the approval of new export licences, as well as the “impact on the safety of allies and partners”. Japan, an important importer of LNG already purchasing supplies from the US, will monitor the implementation of the measure, Trade Minister Yoji Muto said at a regular press conference Tuesday. “We recognise that it could have an impact on the global market for liquefied natural gas, where supply and demand are structurally narrow, and that it could increase supply and contribute to market stabilisation,” he said. “We believe this will also increase the predictability of Japan’s liquefied gas supplies”.