Politics

Trump Announces LNG Export Term Extension to 2050, Praises US Energy Independence

President Donald Trump announced on Wednesday that export term limits for liquified natural gas (LNG) to non-free trade agreement countries have been extended through 2050. Trump also signed four presidential permits to approve pipeline and railway infrastructure at the border.

The U.S. Department of Energys final policy statement allows LNG exports to be extended through 2050, Trump announced at Double Eagle Development, a shale oil and gas company in Midland, Texas. The policy change is a shift from the current protocol of granting 20-year export terms, the energy department noted in a statement.

Secretary of Energy Dan Brouillette, who accompanied Trump to Texas, said the move is among several measures the energy department has taken to support U.S. LNG exports.

“Just this year, LNG exports from the United States will reduce our trade deficit by over $10 billion. Furthermore, LNG exports in the United States are providing tens of thousands of jobs and have led to the investment of billions of dollars in infrastructure,” Brouillette said in a statement. “This administration is following through on our commitment to make U.S. LNG—a long-term, reliable, cleaner-burning energy source—available to the world.”

Trump also signed four presidential permits that approve various infrastructure at the countrys border, as part of efforts to promote U.S. energy independence.

“I will sign four critical permits, granting approval to vital pipeline and railway infrastructure on our nations border. Thats a big deal,” he said ahead of the signing. “This will include two permits allowing the export of Texas crude to Mexico—a giant victory for the workers of this state that youve been after for many years.”

Donald J. Trump in Texas
President Donald Trump waves to supporters after delivering remarks about American energy production during a visit to the Double Eagle Development oil rig, in Midland, Texas, on July 29, 2020. (Tony Gutierrez/AP Photo)

The presidential permits authorize:

  • The Kansas City Southern Railway Company to construct, connect, operate, and maintain railway bridge facilities at the international boundary between the United States and Mexico
  • The Transcanada Keystone pipeline, L.P., to operate and maintain existing pipeline facilities at the international boundary between the United States and Canada
  • Nustar Logistics, L.P., to construct, connect, operate, and maintain pipeline facilities at the international boundary between the United States and Mexico
  • Nustar Logistics, L.P., to operate and maintain existing pipeline facilities at the international boundary between the United States and Mexico

The U.S. oil and gas industry faces a CCP (Chinese Communist Party) virus pandemic-driven economic downturn and global oversupply that briefly drove oil prices into negative territory this spring. Prices have rebounded to around $40 a barrel, still below what some producers need to break even.

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