Commonwealth LNG Gets Initial Approval for Non-FTA Export

The United States Department of Energy (DOE) has granted a conditional permit for non-FTA exportation for Commonwealth LNG, a Louisiana project of Kimmeridge Energy Management Co. LLC with a planned capacity of 9.5 million metric tons a year.

Concurrently the Federal Energy Regulatory Commission (FERC) issued a draft Supplemental Environmental Impact Statement (SEIS) to resolve a court challenge against the project.

The approval comes after the newly installed Trump administration ended ex-President Joe Biden’s pause of pending decisions on LNG export to countries with no free-trade agreement (FTA) with the U.S.

“With these decisions in hand, subject to a FERC Final Order, which we expect in July 2025, and DOE final authorization, Commonwealth anticipates reaching a final investment decision in September 2025, with first LNG production expected in Q1 [first quarter] 2029”, Commonwealth chief executive Farhad Ahrabi said in an online statement issued by the company.

“Today’s actions demonstrate that President Trump is prioritizing the American energy industry and we are both pleased and grateful to have achieved these important regulatory objectives”.

In a separate statement the DOE said, “In the [conditional authorization] order, DOE finds that LNG exports from Commonwealth LNG are likely to yield economic benefits to the U.S., diversify global LNG supplies, and improve energy security for U.S. allies and trading partners over the course of the export term through 2050”.

Meanwhile a public comment period has opened for the draft SEIS prepared by FERC in response to a ruling by the Court of Appeals for the District of Columbia Circuit that the Commission failed to properly assess the cumulative effects of the project’s nitrogen dioxide (NO2) emissions. The comment window closes April 7.

“Commission staff conclude that cumulative modeled National Ambient Air Quality Standards exceedances for 1-hour NO2 may be significant”, FERC said in a statement.

On January 21 President Donald Trump, in his second non-consecutive term at the White House, binned his predecessor’s LNG moratorium, imposed around the same time last year. The DOE under Biden had said the moratorium would give it time to review permitting considerations involving greenhouse gas emissions, environmental impact, energy prices and domestic gas supply.

While ending the pause, the DOE under Trump indicated it would not junk a study published by the Biden government on such considerations. In its January 21, 2025, statement the DOE said it was extending the deadline for the comment period for the results of that study from February 18, 2025, to March 20, 2025.

“President Trump has outlined a bold agenda for unleashing American energy dominance, and restoring regular order on U.S. LNG export permits is critical for meeting this commitment to the American people”, Energy Secretary Chris Wright said in the DOE statement announcing conditional approval for Commonwealth LNG.

“Today marks one of many steps that DOE will be taking to assure our future as a reliable energy supplier to the world and resume regular order to our regulatory responsibilities over natural gas exports”, Wright added.

“Exporting American LNG strengthens the U.S. economy and supports American jobs while bolstering energy security around the world, and I am proud to be working with President Trump to get American energy exports back on track.”

Ben Dell, managing partner at Kimmeridge and Chair of Commonwealth, commented, “These milestones advance our commitment to developing a state-of-the-art LNG export facility that will strengthen energy security for our allies, while prioritizing environmental stewardship and creating lasting value for local communities”.

Dell added that the export facility would unlock about $11 billion in investments in the state and around $3.5 billion in annual export revenue.

Additionally, the export facility would employ approximately 2,000 workers during the peak of construction and 270 workers when it is in operation, according to Dell.

“Commonwealth is pioneering an integrated wellhead-to-water strategy in partnership with its upstream operating entity to deliver low-cost, low-emission gas to the global market, which is seeking supply from trusted trading partners”, Commonwealth said.

To contact the author, email jov.onsat@rigzone.com