US Approves Commonwealth LNG Exports Following Policy Shift

The US Department of Energy has approved Commonwealth LNG’s export authorization for non-free trade agreement (FTA) countries, marking the first major LNG project to receive such approval since President Donald Trump lifted the Biden administration’s freeze on export permits.

Energy Secretary Chris Wright announced the decision alongside Trump, emphasizing the administration’s focus on restoring LNG export approvals and strengthening the United States’ position as a global energy supplier. Wright stated that resuming LNG exports supports economic growth, job creation, and global energy security.

Commonwealth LNG, owned by Kimmeridge Texas Gas, LLC, is planned for Cameron Parish, Louisiana. Once operational, it will be capable of exporting over 1.2Bcf/d of natural gas. The Department of Energy (DOE) found that LNG exports from Commonwealth LNG are likely to provide economic benefits, increase global LNG supply diversity, and enhance energy security for US allies and trade partners through 2050.

DOE expects to issue a final order for the project later this year. The approval aligns with projections from the US Energy Information Administration, which anticipates US LNG exports will reach record levels in 2025, averaging over 15Bcf/d, alongside record US natural gas production nearing 105Bcf/d.

Trump’s energy policy is set to intensify liquefied natural gas (LNG) production, positioning the United States as a key competitor in the global market against Russia and other exporters, capitalizing on the current geopolitical situation caused by the Russia-Ukraine war. This increase in exports could strengthen alliances with Europe, which seeks to reduce its dependence on Russian gas. However, it might also divert attention from initiatives to decarbonize the energy sector.

Trump's campaign pledged to include fast-tracking permits for stalled LNG projects, reversing regulatory pauses from the Biden era, and increasing leases on federal land for gas production. These policies could enable major projects like Texas LNG and Calcasieu Pass (CP2) to advance despite environmental concerns.

According to Yolanda Villegas, Legal Director, Envases, regarding energy cooperation between Mexico and the United States, a fossil fuel-focused approach could destabilize and stall the progress made so far. This could complicate the integration of energy markets under USMCA, affecting cross-border energy infrastructure projects. Additionally, it could reinforce Mexico’s dependence on hydrocarbons, contradicting its own climate goals. On the other hand, increased LNG exports from the United States could lower costs for Mexico, benefiting its economy in the short term but at the expense of greater environmental impact.