An imminent Biden administration report on liquefied natural gas (LNG) exports could pose challenges to President-elect Donald Trump’s energy policies.

The report, required under the Natural Gas Act, may delay Trump’s rapid issuance of new natural gas export licenses, as Fox News reports.

The Biden administration is in the process of finalizing a comprehensive report set to be released by mid-December.

This report evaluates the economic and environmental impacts of ramping up U.S. LNG exports and its alignment with public interest, a prerequisite for the Department of Energy (DOE) before granting new export licenses.

The Delayed Future of Natural Gas Permits

Given the extensive requirements of the Natural Gas Act, the findings of this report could necessitate additional studies or reinterpretations by the incoming Trump administration, potentially stalling the issuance of new permits.

Experts are divided on the report’s impact. While some like Kevin Book of ClearView Energy Partners stress the necessity of robust documentation to prevent legal challenges, others believe it will only serve as a minor obstacle.

Industry and Legal Perspectives on Upcoming Regulations

According to Kevin Book, the industry anticipates strong support from the Trump administration, but he also warns that “corporate sponsors don't put billions of dollars to work on fragile permits, period, full stop.”

This suggests a critical need for solid permit documentation to avoid legal vulnerabilities.

Meanwhile, Jeff Kupfer, president of ConservAmerica, expressed concerns that environmental claims, whether substantiated or not, could slow the progress on new licenses as the Trump team responds to the report’s conclusions.

Environmental Reviews and Temporary Pauses

Since January, the Biden administration has halted new natural gas export permits, conducting a review to ensure compliance with the Natural Gas Act’s environmental standards.

This pause is part of an overarching review of how these exports affect the U.S. environment and economy, aiming to ensure that any increase in LNG exports serves the public interest.

Global Market Dynamics and Trump's Energy Plans

The global LNG market is significant, with approximately 80% involving countries that lack free trade agreements with the U.S., highlighting the strategic importance of U.S. LNG exports on international energy markets.

Trump has expressed intentions to overturn the Biden administration’s pause on natural gas permits and other regulatory measures to bolster domestic energy production and ensure America’s energy dominance, in line with his campaign promises.

Political Promises and Economic Impacts

Trump’s campaign emphasized lowering energy costs and enhancing U.S. energy independence, a stance strongly reiterated by his team. Karoline Leavitt, spokeswoman for the Trump-Vance Transition, stated, “Families have suffered under the past four years' war on American energy, which prompted the worst inflation crisis in a generation.”

Trump, on Truth Social, promised expedited approvals for substantial investments in the U.S., indicating a swift regulatory approach: “Any person or company investing ONE BILLION DOLLARS, OR MORE, in the United States of America, will receive fully expedited approvals and permits, including, but in no way limited to, all Environmental approvals. GET READY TO ROCK!!!”

Legal Challenges and Administrative Responses

Trisha Curtis, CEO of PetroNerds, pointed out the possibility of legal challenges, similar to those faced during the Biden administration.

She believes these will be addressed similarly: “Could there be legal setbacks? Yeah. Just like there were legal setbacks under the Biden administration, and then they fight those legal battles.”

This underlines the contentious nature of LNG export policies and the complex legal landscape that could define the Trump administration’s energy strategies moving forward.