S. 883: Unlocking Domestic LNG Potential Act of 2025

This bill, titled the Unlocking Domestic LNG Potential Act of 2025, aims to amend the existing Natural Gas Act to change the way natural gas export and import facilities are regulated in the United States. The main amendments and provisions in the bill are as follows:

Authority of the Federal Energy Regulatory Commission (FERC)

The bill grants the Federal Energy Regulatory Commission (FERC) the exclusive authority to approve or deny applications for:

• Siting (location),
• Construction,
• Expansion, and
• Operation

of facilities that are involved in the export of natural gas from the U.S. to other countries, as well as facilities that import natural gas from abroad.

Public Interest Consideration

When FERC considers applications for these facilities, it is mandated to view the importation or exportation of natural gas as being consistent with the public interest. This indicates a presumption that such activities are beneficial, aligning with national interests, unless proven otherwise.

Presidential Authority

The bill also clarifies that it does not restrict the President's existing authority to prohibit imports or exports under U.S. law, particularly in cases involving countries designated as state sponsors of terrorism. In such circumstances, the President retains the power to impose restrictions regardless of FERC's determinations.

Legal References

The bill refers to various provisions of law which allow for the prohibition of trade with nations involved in terrorist activities. These include:

• The International Emergency Economic Powers Act,
• The National Emergencies Act,
• Part of the Energy Policy and Conservation Act, and
• The Trading with the Enemy Act.

These legal frameworks provide the basis for potential restrictions on specific trade activities depending on international relations and national security considerations.

Implementation

With the passage of this bill, FERC would be tasked with implementing these new regulations surrounding LNG terminals and could lead to an increased number of applications for exporting or importing natural gas as a result of the perceived facilitation of processes under the new provisions.

Summary of Changes

In summary, this bill primarily:

• Gives FERC exclusive control over LNG export/import facilities,
• Creates a default posture favoring the import/export of natural gas as beneficial for public interest,
• Maintains the President's authority to restrict trade with certain nations,
• Clarifies how existing laws on terrorism and sanctions interact with this regulatory framework.

Relevant Companies

• CVX (Chevron Corporation) - Likely to be involved in LNG exports given its role as a major energy company.
• XOM (Exxon Mobil Corporation) - A significant player in natural gas production and could expand its operations under this bill.
• DLNG (Dynagas LNG Partners LP) - As a company specifically focused on LNG shipping, it may see increased business opportunities.
• NE (Noble Corporation) - Involved in offshore drilling, which could support LNG production if operations expand.