The Department of Energy is issuing a final policy statement that allows for US LNG exports to non-free trade agreement countries to be extended through the year 2050.
This policy is a change from the current practice of granting 20-year LNG export terms.
President Donald J. Trump announced the new rule during his speech in Midland, Texas on Wednesday.
“This policy is the latest of several measures DoE, under President Trump, has taken to support US LNG exports and the benefits they bring both to the US and to our allies around the world,” said Secretary of Energy Dan Brouillette, who accompanied Trump to Texas.
He said, just this year, LNG exports from the US would reduce the nation’s trade deficit by over $10 billion.
Furthermore, LNG exports are providing “tens of thousands of jobs and have led to the investment of billions of dollars in infrastructure.”
DoE originally proposed the 2050 term extension in a policy statement issued in February this year.
In this final policy statement, it is responding to the comments received and finalizing the earlier proposal.
The final policy allows existing non-FTA authorization holders to apply to extend their export term through 2050.
It also allows existing applicants to amend their pending non-FTA applications to request an export term through 2050.
The US is a top global producer of natural gas and is currently in its fourth consecutive year as a net exporter of natural gas.
To date, US LNG exports have reached 38 countries across five continents, according to DoE.