Executive Orders and U.S. LNG Exports: Frequently Asked Questions

Executive Orders and U.S. LNG Exports:

Frequently Asked Questions

Updated February 6, 2025

Congressional Research Service

https://crsreports.congress.gov

R48038

Executive Orders and U.S. LNG Exports: Frequently Asked Questions

Contents

Introduction ..................................................................................................................................... 1

Questions and Answers ................................................................................................................... 1

Has the Biden Administration “pause” been lifted? .................................................................. 1

Do other executive orders mention LNG exports?.................................................................... 1

Generally, what is the LNG export permitting process? ........................................................... 2

How is “the public interest” defined? ....................................................................................... 2

When did the United States start exporting LNG and what has been the effect on the

global market? ........................................................................................................................ 3

What is the United States LNG export capacity? ...................................................................... 4

Since the United States started exporting LNG from the lower 48 states, what has

happened to domestic natural gas prices? .............................................................................. 4

Figures

Figure 1. Selected Global Natural Gas Prices ................................................................................. 5

Appendixes

Appendix. ........................................................................................................................................ 6

Contacts

Author Information.......................................................................................................................... 7

Congressional Research Service

Executive Orders and U.S. LNG Exports: Frequently Asked Questions

Introduction

On January 20, 2025, Inauguration Day, President Trump signed a number of executive orders

related to energy, including natural gas and liquefied natural gas (LNG) exports. One of the

objectives of Executive Order (E.O.) 14154, “Unleashing American Energy,” was to lift the

“pause” on issuing LNG export permits for trade with countries that do not have a free trade

agreement with the United States.1 The pause had been implemented by the Biden Administration

in January 2024.2 In July 2024, a federal judge reversed the Department of Energy’s “pause.”3

Questions and Answers

Has the Biden Administration “pause” been lifted?

Yes. Section 8(a) of E.O. 14154 states that “the Secretary of Energy is directed [to] restart

reviews of applications for approvals of liquefied natural gas export projects as expeditiously as

possible, consistent with applicable law.”4 In addition, this executive order states that when

assessing the public interest, the Secretary of Energy should consider economic and employment

effects to the United States and security of allies and partners. The Natural Gas Act, which gives

the Secretary of Energy authority to approve natural gas exports, does not define “the public

interest,” and the criteria to consider (referenced in the previous sentence) do not change the law.5

Do other executive orders mention LNG exports?

Yes, directly and indirectly. Section 2(d) of E.O. 14153, “Unleashing Alaska’s Extraordinary

Resource Potential,” prioritizes the development of Alaska’s LNG potential, including the sale of

LNG to other parts of the United States. Selling Alaskan natural gas to other parts of the United

States would likely require Jones Act-compliant LNG tankers (i.e., tankers built in the United

States).6 At present, the United States does not build LNG tankers, which is a barrier to

compliance with the Jones Act. In addition to lifting the “pause” mentioned above, E.O. 14154

also supports the approval of an application to construct an offshore, deepwater LNG project in

the U.S. Gulf, which is pending with the Maritime Administration (MARAD).

The following list summarizes three executive orders with potential effects on natural gas exports

and, more generally, natural gas production:

1 Executive Order 14154 of January 20, 2025, “Unleashing American Energy,” 90-18 Federal Register 8357, January

29, 2025.

2 Department of Energy, “DOE to Update Public Interest Analysis to Enhance National Security, Achieve Clean

Energy Goals and Continue Support for Global Allies,” press release, January 26, 2024, https://www.energy.gov/

articles/doe-update-public-interest-analysis-enhance-national-security-achieve-clean-energy-goals.

3 Niina H. Farah, “Judge Overturns Biden’s LNG Export Pause,” EnergyWire, July 2, 2024, online edition.

4 In support of the executive order, Secretary of Energy Chris Wright issued a secretarial order for LNG export permits

to return to regular processing. Department of Energy, “Secretary Wright Acts to ‘Unleash Golden Era of American

Energy Dominance,’” press release, February 5, 2025, https://www.energy.gov/articles/secretary-wright-acts-unleashgolden-era-american-energy-dominance.

5 15 U.S.C. §717b(a).

6 For additional information on the Jones Act, see CRS Report R45725, Shipping Under the Jones Act: Legislative and

Regulatory Background, by John Frittelli.

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Executive Orders and U.S. LNG Exports: Frequently Asked Questions

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•

•

E.O. 14153, “Unleashing Alaska’s Extraordinary Resource Potential,” promotes

LNG exports from Alaska.7

E.O. 14154, “Unleashing American Energy,” lifts the LNG export pause and

promotes deepwater ports for LNG exports. E.O. 14154 also encourages natural

gas production.8

E.O. 14156, “Declaring a National Energy Emergency,” promotes the

development of fossil fuels and infrastructure, including natural gas, for domestic

use and allies.9

Generally, what is the LNG export permitting process?

To export natural gas from the United States, a company must obtain two permits—one from the

Federal Energy Regulatory Commission (FERC), to construct the facility to liquefy the natural

gas and load it on a tanker, and one from the Department of Energy (DOE), to export the

commodity itself. The DOE permitting process depends upon where the natural gas is going and

whether or not that country has a free trade agreement (FTA) with the United States requiring

national treatment for natural gas.10 If the shipment is going to a country that does not have an

FTA with the United States, DOE must make a determination whether the export is in the public

interest prior to granting or denying the permit. This is the part of the process the pause had

affected. If the United States has an FTA with a country, the export is predetermined by statute to

be in the public interest and the permit must be granted “without modification or delay.”11 This

process is laid out in the Natural Gas Act (NGA) and regulations promulgated by DOE pursuant

to its authority under the act.12

How is “the public interest” defined?

Congress did not define “the public interest” in the NGA, giving DOE discretion in making and

adjusting its public interest determinations. For example, when Russia invaded Ukraine in 2014,

DOE started emphasizing national security when discussing the public interest determination.

This emphasis also highlights that DOE has adjusted the factors of its public interest

determination over time, although it has never publicly defined these factors in specific terms.13

Based on the contents of the first permit granted by DOE in 2010 for export from the lower 48

states to a non-free trade country, analysts surmised that the DOE criteria likely included national

security, climate change, jobs, and other such issues.

7 Executive Order 14153 of January 20, 2025, “Unleashing Alaska’s Extraordinary Resource Potential,” 90-18 Federal

Register 8347-8351, January 29, 2025.

8 Executive Order 14154 of January 20, 2025, “Unleashing American Energy,” 90-18 Federal Register 8353-8359,

January 29, 2025.

9 Executive Order 14156 of January 20, 2025, “Declaring a National Energy Emergency,” 90-18 Federal Register

8433-8437, January 29, 2025.

10 National treatment for natural gas means treating the import from a country with which the United States has a free

trade agreement the same as natural gas produced in the United States.

11 15 U.S.C. §717b(c).

12 15 U.S.C. §717b.

13 U.S. Congress, House Committee on Energy and Commerce, Subcommittee on Energy and Power, Quadrennial

Energy Review and Related Discussion Drafts, 114th Cong., 1st sess., June 2, 2015, Serial No. 114-47.

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Executive Orders and U.S. LNG Exports: Frequently Asked Questions

After that first approval, the Senate Committee on Energy and Natural Resources held a hearing

on LNG exports in November 2011.14 At the hearing, DOE was asked to undertake two studies—

in part, to better understand the effects of LNG exports on consumers and the country. The first

study was related to domestic natural gas prices and was undertaken by the U.S. Energy

Information Administration (EIA) with hypothetical export volumes.15 The second study was an

economic evaluation by an external consulting firm, NERA Economic Consulting, of exports,

using the price study as an input.16 The first study provided a range of outcomes based on the

criteria. The second study concluded that more exports were better for the overall economy.

DOE stopped issuing permits while the congressionally requested studies were being conducted,

although this was not mandated by statute or executive order. The next DOE permit approval was

not granted for approximately two years from when the company’s application was submitted,

whereas the first permit took 10 months. Additionally, since those two studies were completed,

DOE has periodically commissioned other studies—for example, on price effects of different

levels of exports, on life cycle greenhouse gas emissions, and on the effect of exports on domestic

natural gas prices and the economy. The most recent study was released in December 2024.17

When did the United States start exporting LNG and what has been

the effect on the global market?

The United States has been an LNG exporter since 1969, initially from a relatively small facility

in Alaska and exporting almost exclusively to Japan. From the lower 48 states, LNG exports

started in February 2016 with Cheniere Energy’s Sabine Pass facility in Sabine, Louisiana. As

new export terminals have begun operations, U.S. LNG export quantities have increased every

year, to the point where the United States LNG export quantities are comparable to those of Qatar

and Australia. The United States became the largest LNG exporter by volume in 2023.18

Additionally, while U.S. LNG exports have been the focus of policy, the United States also

exports large quantities of natural gas by pipeline, primarily to Mexico.

In addition to bringing growing volumes of natural gas to the global market, U.S. LNG exports

have changed the market dynamics. U.S. contracts were more market-oriented and pushed other

countries to follow suit. Most global contracts had been indexed to oil prices and contained

destination clauses, which limited where the exports could go. Today, the global market for

natural gas is much more tradeable, with more buyers, sellers, and risk management tools, making

it more like oil as a commodity.

14 U.S. Congress, Senate Committee on Energy and Natural Resources, Hearing to Consider Market Developments for

U.S. Natural Gas, Including the Approval Process and Potential for Liquefied Natural Gas Exports, 112th Cong.,

1st sess., November 8, 2011, https://www.energy.senate.gov/hearings/2011/11/full-committee-hearing-to-considermarket-developments-for-us-natural-gas-including-the-approval-pro.

15 U.S. Energy Information Administration, Effect of Increased Natural Gas Exports on Domestic Energy Markets,

Department of Energy, January 2012, https://www.energy.gov/sites/prod/files/2013/04/f0/fe_eia_lng.pdf.

16 NERA Economic Consulting, Macroeconomic Impacts of LNG Exports from the United States, Department of

Energy, December 3, 2012, https://www.energy.gov/sites/prod/files/2013/04/f0/nera_lng_report.pdf.

17 Department of Energy, “U.S. Department of Energy Completes LNG Study Update, Announces 60-Day Comment

Period,” press release, December 17, 2024, https://www.energy.gov/articles/us-department-energy-completes-lngstudy-update-announces-60-day-comment-period.

18 Energy Institute, Statistical Review of World Energy 2024, June 2024, p. 43, https://www.energyinst.org/__data/

assets/pdf_file/0006/1542714/684_EI_Stat_Review_V16_DIGITAL.pdf.

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Executive Orders and U.S. LNG Exports: Frequently Asked Questions

What is the United States LNG export capacity?

As of early 2025, the United States has almost 15 billion cubic feet per day of liquefaction

capacity.19 It also has approximately 17 billion cubic feet per day of liquefaction capacity under

construction and approximately another 19 billion cubic feet per day of liquefaction capacity that

has been approved by FERC and DOE but has not broken ground.20 This last category indicates

some market hesitation for companies that could, in theory, start construction but have chosen not

to. The second category of projects, those that are under construction, are likely to be completed.

Construction of liquefaction terminals is expensive, costing somewhere between $10 billion and

$20 billion per terminal. Companies generally do not make such an investment without

confidence that they will receive a return on their investment. Additionally, to get financing for a

terminal, the facility’s owner generally has to secure contracts, usually for up to 80% of the

terminal’s capacity.

Since the United States started exporting LNG from the lower 48

states, what has happened to domestic natural gas prices?

Since 2016, when the United States started exporting LNG from the lower 48 states, domestic

natural gas prices have stayed stable and relatively low compared with those in other countries,

except for the occasional effects of an external factor such as Russia’s invasion of Ukraine or

unexpected cold weather. (See Figure 1.)

19 Federal Energy Regulatory Commission, United States LNG Export Terminals—Existing, January 14, 2025,

https://www.ferc.gov/media/us-lng-export-terminals-existing-approved-not-yet-built-and-proposed.

20 Federal Energy Regulatory Commission, United States LNG Export Terminals—Approved, Not Yet Built, January 14,

2025, https://www.ferc.gov/media/us-lng-export-terminals-existing-approved-not-yet-built-and-proposed.

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Executive Orders and U.S. LNG Exports: Frequently Asked Questions

Figure 1. Selected Global Natural Gas Prices

January 2016-January 2025

Source: CRS using price data from Bloomberg L.P.

Notes: USD/mmBtu = U.S. dollars per million British thermal units. TTF is the Dutch Title Transfer Facility,

which has become the most active trading point in Europe. Prices are not adjusted for inflation.

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Executive Orders and U.S. LNG Exports: Frequently Asked Questions

Appendix.

Overview of Approvals Required Under the Natural Gas Act

Pursuant to Section 3(a) of the Natural Gas Act (NGA), parties in the United States seeking to

enter into natural gas transactions with foreign buyers must file for an export authorization.21 If

the United States has a free trade agreement (FTA) in effect with the nation to which the LNG

would be exported, the NGA directs DOE to deem the export consistent with “the public

interest.”22 Exports to non-FTA countries are presumed to be in the public interest unless, after

opportunity for a hearing, DOE finds that the authorization would not be consistent with the

public interest.23 Pursuant to Section 3(e) of the NGA, the siting, construction, expansion, or

operation of an LNG export terminal, onshore or in state waters, requires approval from the

Federal Energy Regulatory Commission (FERC).24 Depending on the details of the commodity

export or terminal facility, requirements established under additional state, tribal, or federal law

may also apply to the project. LNG permit approvals from DOE and FERC are federal actions

subject to environmental review under the National Environmental Policy Act (NEPA; 42 U.S.C.

§§4321 et seq.).

Summary of DOE’s Public Interest Evaluation Process

The NGA does not detail what factors DOE must consider when making a public interest

determination for exports to non-FTA countries. According to DOE’s regulations, its primary

public interest evaluation is on the domestic need for the natural gas that is proposed to be

exported, but it may consider any other issues determined to be appropriate. Those other factors

may include U.S. energy security, economic impacts (e.g., domestic natural gas prices), and

environmental considerations, among others. Generally, the administrative process for reviewing

applications to export natural gas includes the following steps:

•

•

•

An entity submits an application to DOE with information regarding the

proposed export.25

After ensuring it has all necessary information about the project, DOE publishes

a notice in the Federal Register inviting public participation and comment on the

proposed project.26

DOE and, typically, the applicant respond to comments or protests.

21 15 U.S.C. §717b(a); DOE regulations implementing those requirements were promulgated at 10 C.F.R. Part 590,

“Administrative Procedures with Respect to the Import and Export of Natural Gas.”

22 15 U.S.C. §717b(c).

23 15 U.S.C. §717b(a).

24 See 15 U.S.C. §717b(e). Federal Energy Regulatory Commission regulations implementing this section of the

Natural Gas Act were promulgated at 18 C.F.R. Part 153, “Applications for Authorization to Construct, Operate, or

Modify Facilities Used for the Export or Import of Natural Gas.”

25 As required in 10 C.F.R. §590.202.

26 10 C.F.R. §590.205.

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Executive Orders and U.S. LNG Exports: Frequently Asked Questions

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DOE considers any other relevant information included in the administrative

record and issues a final opinion and order on the application, attaching any

necessary conditions it determines are needed to ensure the project is in the

public interest.27

Author Information

Michael Ratner

Specialist in Energy Policy

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan

shared staff to congressional committees and Members of Congress. It operates solely at the behest of and

under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other

than public understanding of information that has been provided by CRS to Members of Congress in

connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not

subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in

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copy or otherwise use copyrighted material.

27 10 C.F.R. §590.404.

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