The "Unlocking our Domestic LNG Potential Act of 2025" aims to streamline the approval process for natural gas export facilities and reinforces the U.S.'s authority over natural gas regulation, while preserving presidential powers to restrict trade for national security or foreign policy reasons.
August Pfluger
Representative
TX-11
The "Unlocking our Domestic LNG Potential Act of 2025" aims to solidify the United States' role in the global energy market by granting the Federal Energy Regulatory Commission sole authority over approving or denying natural gas export and import facilities. This includes LNG terminals, streamlining the approval process. The Act does not alter the authority of other federal agencies, and it preserves the President's power to restrict imports or exports under existing laws and sanctions, particularly concerning state sponsors of terrorism. "State sponsor of terrorism" is defined by referencing specific sections of existing law.
Feds Grab Sole Control Over Gas Exports: FERC Now King of LNG Approvals
The "Unlocking our Domestic LNG Potential Act of 2025" changes the rules for natural gas exports. Basically, it hands the Federal Energy Regulatory Commission (FERC) the only key to approving or denying any facility that exports or imports natural gas, including those massive LNG (liquefied natural gas) terminals. This law change officially considers these gas export/import activities to be in the "public interest." (SEC. 2)
Shifting Sands: What's Changing?
Previously, multiple agencies had a say. Now, FERC calls the shots. This could speed up the often-lengthy process of getting these facilities built. For a construction company specializing in these types of projects, this could mean more consistent work, potentially leading to more hiring. On the flip side, for a homeowner near a proposed site, this might mean less opportunity to challenge a project on environmental or safety grounds if FERC is pushing things through. The bill does preserve the existing authority of other federal agencies. (SEC. 2)
Presidential Power Plays
The President still holds the ultimate trump card. Under existing laws like those dealing with sanctions or targeting state sponsors of terrorism, the President can block imports or exports. Speaking of which, the bill spells out exactly who qualifies as a "state sponsor of terrorism," referencing specific sections of laws like the Export Control Reform Act of 2018 (50 U.S.C. 4813), the Foreign Assistance Act of 1961 (22 U.S.C. 2371), and the Arms Export Control Act (22 U.S.C. 2780). So, if a country is on that list, don't expect any gas deals. (SEC. 2)
Ripple Effects: From Pipelines to Prices
This shift could have some real-world consequences. More LNG exports could mean more jobs in the natural gas industry, from drilling to transportation. But, it's worth remembering that more gas going overseas could also tighten up domestic supply. The bill does not address how increased exports might affect domestic prices.
Fine Print
The bill amends Section 3 of the Natural Gas Act.