U.S. LNG Surges Forward
FERC Approvals and Regulatory Shifts in 2025
The U.S. liquefied natural gas (LNG) sector is experiencing a transformative year in 2025, marked by significant regulatory advancements and project milestones. The Federal Energy Regulatory Commission (FERC) has played a pivotal role, with its recent approval of Commonwealth LNG’s 9.5 million tonnes per annum (MTPA) export terminal on June 19, 2025, underscoring a broader push to expand U.S. LNG capacity. This article examines the flurry of LNG project developments, FERC’s contributions, and the regulatory hurdles overcome, integrating insights from Nathan’s Newsletter on U.S. LNG progress.
FERC’s Commonwealth LNG Approval
On June 19, 2025, FERC issued its final order upholding the authorization of Commonwealth LNG’s export terminal on the Calcasieu River in Louisiana, a critical step toward its final investment decision (FID) expected next quarter. This approval, following a supplemental environmental impact statement (SEIS) addressing air quality and environmental “justice” concerns, clears a path for the project’s 1.21 Bcf/d export capacity. The decision aligns with FERC’s broader efforts to streamline LNG project approvals, ensuring compliance with the National Environmental Policy Act (NEPA) while meeting global energy demand.
Key LNG Project Milestones in 2025
The past year has seen remarkable progress across multiple U.S. LNG projects, driven by a favorable regulatory environment under Energy Secretary Chris Wright and FERC’s proactive stance. Notable developments include:
Cheniere Energy: The Corpus Christi Stage 3 project, adding over 10 MTPA, achieved first LNG production in December 2024 and substantial completion of its first phase by March 2025. The Sabine Pass expansion received a key export authorization in October 2024, targeting up to 20 MTPA.
Woodside Energy: The Louisiana LNG project, formerly Lake Charles LNG, secured a $17.5 billion FID in April 2025 for 16.5 MTPA, with first production slated for 2029.
Venture Global LNG: The Calcasieu Pass facility reached full commercial operations in April 2025, while Plaquemines LNG began production in December 2024. The CP2 LNG project, with a potential 20 MTPA, received DOE export authorization in March 2025 and secured a $3 billion loan in May.
Golden Pass LNG: This $10 billion, 18 MTPA project in Texas received a DOE extension in March 2025, providing flexibility for its construction timeline.
Delfin LNG: This offshore floating LNG project, with up to 13.2 MTPA capacity, obtained a Deepwater Port License and DOE export permit extension in March 2025.
These advancements highlight the U.S.’s trajectory to exceed 15 Bcf/d in LNG exports in 2025, reinforcing its position as the world’s leading LNG exporter.
Overcoming Regulatory Hurdles
The LNG sector has navigated significant regulatory challenges in 2025, largely due to strategic policy shifts:
On April 1, 2025, the DOE eliminated the Biden-era seven-year start deadline for LNG projects, replacing it with case-by-case flexibility. This addressed delays faced by projects like Rio Grande LNG, which has been stalled since 2016 due to court remands over climate and environmental justice concerns.
On April 29, 2025, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued an Advance Notice of Proposed Rulemaking (ANPRM) to update LNG regulations under 49 CFR Part 193. By incorporating advanced technologies and risk-based standards, PHMSA aims to enhance safety and reduce compliance costs, aligning with industry needs.
The Biden administration’s 2024 LNG export permit pause, based on suppressed 2023 DOE findings, was reversed under Secretary Wright. The 2024 LNG Export Study, finalized on May 19, 2025, confirmed that U.S. LNG exports support over 120,000 jobs, bolster the trade balance, and reduce global emissions by displacing coal.
Strategic and Economic Implications
These regulatory shifts and project approvals have profound implications. Economically, LNG exports drive job creation and GDP growth, with the industry supporting over 120,000 jobs in 2023. Strategically, they enhance U.S. energy security and provide allies with a reliable alternative to Russian gas. Environmentally, the 2023 and 2024 DOE studies underscore LNG’s role in reducing global emissions, countering earlier narratives that hindered progress.
FERC’s approval of Commonwealth LNG, alongside advancements in projects like Corpus Christi, Golden Pass, and Plaquemines, signals a robust U.S. LNG sector in 2025. Overcoming regulatory hurdles through DOE’s flexible policies and PHMSA’s modernization efforts pushes the U.S. to redefine global energy markets. Stakeholders should stay engaged through platforms like regulations.gov to shape future reforms and ensure a thriving, secure energy future.
For in-depth analysis on U.S. LNG developments, subscribe to Nathan’s Newsletter. Share this article to spark discussion on America’s energy leadership.
Sources
Nathan’s Newsletter: Unleashing U.S. LNG Exports
Nathan’s Newsletter: U.S. LNG: Full Steam Ahead in the Last Year
Nathan’s Newsletter: PHMSA Announces Modernized LNG Regulations
Nathan’s Newsletter: DOE Ditches LNG Export Deadlines