Trump aims to lift LNG export ban, accelerate federal drilling permits

Donald Trump’s transition team is preparing a comprehensive energy plan to implement shortly after his inauguration, according to two sources familiar with the strategy.

The package includes approving export permits for new liquefied natural gas (LNG) projects and expanding oil drilling on federal lands and offshore, Caliber.Az reports citing exclusive material by Reuters.

The energy plan aligns with Trump’s campaign pledges but signals his intention to prioritize oil and gas production as a central component of his early agenda, alongside immigration.

According to the sources, Trump also intends to reverse key climate policies introduced by his Democratic predecessor. This includes rolling back tax credits for electric vehicles and dismantling clean power plant standards aimed at reducing coal and natural gas use.

A top priority will be lifting President Joe Biden’s moratorium on new LNG export permits, imposed earlier this year to assess environmental impacts. Trump plans to expedite the approval of pending permits and accelerate the issuance of drilling permits for federal lands. Additionally, he aims to revise a five-year offshore drilling plan to include more lease sales.

In a symbolic move, Trump is expected to push for the Keystone XL Pipeline’s approval, a project halted when Biden revoked its permit on his first day in office. However, any revival would require starting from scratch, as land easements have since been returned to property owners.

“President Trump will use his executive authority on day one to fulfil the promises he made to the American people,” said Karoline Leavitt, spokesperson for Trump’s transition team.

While some elements of the energy agenda will require legislative or regulatory action, Trump has promised to declare an energy emergency on his first day, potentially bypassing certain obstacles to expedite changes.

The plan also includes asking Congress for funding to replenish the Strategic Petroleum Reserve, which was significantly drawn down under Biden to address inflation and energy price spikes. Refilling the reserve could boost short-term oil demand and incentivize U.S. production.

Trump also intends to pressure the Paris-based International Energy Agency (IEA) to shift its focus away from emission reduction policies and toward energy security. Dan Eberhart, CEO of oilfield services firm Canary, confirmed he had urged Trump to use U.S. leverage to encourage the IEA to adopt a more pro-oil stance.

Biden’s freeze on new LNG export permits earlier this year stalled several major projects in Louisiana, including Venture Global’s CP2, Commonwealth LNG, and Energy Transfer’s Lake Charles complex. Without export permits, developers cannot proceed with long-term construction plans.

The United States, the world’s largest natural gas producer, became the leading exporter of LNG in 2022 as Europe turned to American energy to reduce reliance on Russian supplies after the Ukraine invasion. Although the Biden administration has pledged to release an environmental study on LNG exports before Trump takes office on January 20, the report will have little influence on the incoming administration, the sources said.

By Tamilla Hasanova