A wave of new liquefied natural gas (LNG) terminals is expected to be constructed along the Texas-Louisiana Gulf Coast if President-elect Donald Trump fulfills his pledge to revive the permitting process for LNG projects. This move would significantly increase US LNG exports, providing an economic boost to communities like Port Arthur and Brownsville.
However, the rush to build comes as concerns over climate change and local health risks grow. The Biden Administration recently released a study highlighting these issues, which could aid litigation against federal permits.
Currently, 11 LNG projects are awaiting export permits from the Department of Energy, with six expected to begin construction after receiving their permits. This would increase US LNG exports by over 40% and make the country the largest LNG exporter in the world.
Environmental groups have been challenging federal permits, slowing down development. The Biden Administration’s study questioning the sustainability of continued LNG expansion may further slow progress.
US drillers are eager to tap into natural gas markets overseas due to the ongoing oil and gas boom in West Texas. However, some residents in Port Arthur, already surrounding refineries and petrochemical plants, have expressed concerns about the potential impact on their health and environment.
Despite these concerns, American LNG developers remain confident that demand for LNG will be sustained for decades. The market is seen as a key factor in determining which projects get built, rather than government regulations.
The Trump administration’s plans to revive the permitting process may be delayed due to ongoing litigation and the need for the Biden Administration to revise or replace its study on LNG expansion.
Source: https://www.houstonchronicle.com/politics/article/trump-lng-gulf-coast-pause-19984701.php