Pfluger Bill to Ease LNG Export Rules Advances in House Committee

WASHINGTON, DC — The House Energy and Commerce Committee advanced Congressman August Pfluger's (TX-11) bill to slash red tape and remove burdensome energy export restrictions imposed by former President Biden. 

The Unlocking Domestic LNG Potential Act depoliticizes the export of American liquefied natural gas (LNG) by eliminating the requirement for the U.S. Department of Energy (DOE) to authorize its export and instead giving the Federal Energy Regulatory Commission (FERC) sole authority over the approval process.

Read his remarks as prepared for delivery below:

Section 3 of the Natural Gas Act requires that natural gas exports to countries that have a free-trade agreement with the US be approved without delay. For countries that do not have a free-trade agreement with the US, the Energy Secretary is required to approve export requests unless they find such exports “will not be consistent with the public interest.” Therefore, the Natural Gas Act includes a rebuttable presumption in favor of authorizing U.S. LNG exports.

In early 2024, after succumbing to political pressure from environmental activists, the Biden-Harris administration announced an indefinite ban on issuing export permits to non-free trade agreement (FTA) countries while it reviewed the climate impacts of U.S. LNG. 

During this ban, Russia overtook the US as the lead gas supplier to Europe, long-term American contracts were jeopardized, and global buyers were forced to look towards less clean sources. 

Thankfully, the Trump Administration quickly reversed this ban, and just last month, DOE issued its first final LNG export approval. My legislation, the Unlocking Our Domestic LNG Potential Act would ensure a ban is never placed on US LNG exports again. 

By removing DOE from the process, export restrictions would be repealed, and LNG exports would have equal treatment with other commodities. 

LNG exports unequivocally benefit our economy and domestic prices. Congress must act to remove the politics from energy exports, just as this Committee did when it lifted the crude oil export ban. 

The IEA expects global gas demand to reach record highs in the coming years, underscoring the need for new LNG supply. It must be the United States, not Iran or Russia, who meets that demand and supplies affordable, clean, and abundant LNG to the world. 

Iran is one of only four countries with substantial proven natural gas reserves. The conflict in the Middle East, instigated by Iran’s actions over the last two years, reminds us of the geopolitical risks posed when adversarial regimes control critical energy supplies. At a time when Iran seeks to leverage its resources for strategic influence in direct opposition to US interests, American LNG must fill the gap in the global market. Our allies and trading partners should not be dependent on nefarious actors that use energy revenues to fund terrorism. US LNG offers not only energy security but also geopolitical stability, reliability, and cleaner alternatives for buyers around the world. 

I urge my colleagues to support H.R. 1949, and I yield back.