Trump’s DOE Issues First Final Export Approval to Sempra’s Port Arthur LNG

 

After campaigning on a promise to accelerate the U.S. energy industry, the Trump administration issued its first final LNG export approval which went to Sempra Infrastructure’s proposed Port Arthur LNG Phase 2 project. The permit granted by the Department of Energy would make it possible for the second phase project to export LNG to countries that do not have a free-trade agreement with the United States.

The Trump administration has been fiercely critical of its predecessor’s pause on LNG export permits, terming the move “reckless.” Following the finalization of the 2024 LNG Export Study, which the administration is praising for confirming that LNG exports support the U.S. economy, strengthen allies, and enhance national security, the Department of Energy (DOE) has moved to support the expansion of the industry.

The Port Arthur LNG facility is promoted as having the potential to become one of the largest LNG export facilities in North America. Phase II of the export facility has been in the works since September 2023 when the Biden administration issued authorization from the Federal Energy Regulatory Commission. The project is expected to include two liquefaction trains capable of producing approximately 13 Mtpa of LNG, which would double the total liquefaction capacity of the Port Arthur LNG facility up to 26 Mtpa. 

Phase 1 of the Port Arthur LNG project is currently under construction and consists of trains 1 and 2, as well as two LNG storage tanks and associated facilities. Sempra reports construction of the project continues to progress, and they expect commercial operation for train 1 in 2027 and train 2 in 2028.

DOE is hailing the issuing of the permit for Phase 2 as another critical step in expanding the U.S.’s LNG industry. Sempra however highlights that the project remains subject to a number of risks and uncertainties. These include completing the required commercial agreements, securing and/or maintaining all necessary permits, obtaining financing, and reaching the final investment decision.

Sempra also operates the Cameron LNG export terminal in Louisiana, which has been exporting LNG since 2019, and is currently constructing the Energia Costa Azul terminal in Mexico, which will begin commercial export operations of U.S.-sourced gas as LNG beginning in 2026. 

In authorizing the exports, DOE has relied heavily on the LNG Export Study that was released by the Office of Fossil Energy & Carbon Management in December last year and had a public comment period through March 20 this year. Part of the findings in the study is that the U.S. has a robust natural gas supply that is sufficient to meet growing levels of exports while minimizing impacts on domestic prices, growing LNG exports increase gross domestic product and expand jobs while also improving trade balance. It also asserts that increasing LNG exports enhances domestic and international global security with no discernable impact on global greenhouse gas emissions. 

While Port Arthur Phase 2 marks the first final approval, the administration had previously issued four LNG export authorizations. This includes one to Commonwealth LNG's proposed export facility in Louisiana, and another to Venture Global's CP2 project also in Louisiana. Energy Secretary Chris Wright says the administration has approved a total volume of exports of 11.45 Bcf/d.  

The U.S. has been the largest exporter of LNG ahead of Qatar and Australia. Qatar however is preparing to open its North Field Expansion project starting in 2026. By 2030 it expects to double production to 142 mtpa.