Technip Energy: election could change US permitting for LNG projects

France-based Technip Energies chief executive Arnaud Pieton has speculated, in a company earnings call to investors, that the upcoming US presidential election could result in faster permitting timelines for LNG projects.

Mr Pieton said a win by either candidate, Democrat nominee and current US Vice President Kamala Harris or Republican nominee and former US President Donald Trump, could result in a removal of a currently suspended moratorium on permitting for LNG export project expansions.

Mr Pieton said a win by Democratic candidate Ms Harris would not necessarily prolong the permitting slowdown that had arisen under a Biden administration moratorium, but a formal removal of the moratorium could be more gradual, according to a Reuters report.

“A Trump victory could lift the moratorium faster,” Mr Pieton said, while underscoring how energy policies may impact project timelines and market potential.

On the campaign trail, Mr Trump has promised to speed up energy permitting, but analysts have questioned whether another of his policy promises, to apply 60% tariffs on imports from China, would negate any market expansion from faster permitting.

Despite the Technip Energies chief executive’s statements, the US Energy Information Administration (EIA) has forecast North America’s liquefied natural gas (LNG) export capacity is expected to more than double by 2028. Even with regulatory delays such as the on-appeal moratorium in place, North American LNG terminals are poised for record growth, according to the EIA.

Moratorium

The US federal government’s Department of Energy (DOE), at the direction of the Biden administration, announced a moratorium in January 2024 on new licences for LNG export and expansion projects, specifically targeting exports to countries that are not free trade partners with the US. The stated rationale for the pause from the Biden administration was to allow the DOE to study how LNG shipments impact on climate change goals as well as US economic and national security interests.

The moratorium was overturned, at least temporarily, in July, when a US federal judge in Louisiana who had been appointed by former president Mr Trump reversed the moratorium in response to a lawsuit filed by 16 states, arguing the policy violated federal law. The DOE is currently appealing the ruling.

Since the Louisiana court’s ruling, the Biden administration has approved a permit for the small-scale Fast LNG export plant offshore Mexico that is run by LNG producer New Fortress Energy, allowing the company to ramp up exports to countries that do not have free-trade agreement with US, including allies in Europe, by about 3%. However, the approval is only valid until August 2029. The Altamira project is part of a growing trend of floating LNG facilities aiming to meet the increasing demand for flexible LNG production.

The DOE said in a statment it “continues to update its analyses of LNG exports to ensure the best information, guided by the latest science, is considered for future reviews of LNG export applications”.

Lake Charles LNG

Technip Energies, in partnership with KBR under the KTJV joint venture, has secured a contract to develop the Lake Charles LNG terminal in Louisiana, pending a final investment decision.

The Lake Charles project, a US$4-5Bn investment, aims to transform the current regasification terminal into an export hub with a 16.45M tonnes per annum capacity, complete with three modular LNG trains.

Once completed, it could rank among the largest US LNG export facilities.

Lake Charles LNG president Tom Mason highlighted the commitment of Technip Energies and KBR, saying the contract’s structure aligns both companies with the project’s objectives and long-term goals.

However, final steps depend on securing sufficient commercial offtake agreements and third-party equity, signalling a cautious but steady path forward.