The Trump administration moved this week to eliminate another artificial obstacle to another Biden-era artificial infrastructure development.
In April 2023, Biden’s Energy Bureau was founded under the overpolitical leadership of Secretary Jennifer Granholm. implementation A new policy requiring LNG projects to begin exports within seven years of federal approval. Granholm has somewhat hilariously argued that the policy aims to ensure timely development and adjust climate targets by preventing indefinite delays in energy projects that could affect emissions targets.
This claim was expressed very specifically just eight months later when Granholm coincided with then-President Joe Biden’s “suspension” and was allowing new LNG projects as such exports could actually produce higher emissions than coal-fired power plants. The draft study that served as a basis for the suspension was completely exposed within months, but Granholm and the White House worked hard on their ploys for a year until Donald Trump took office on January 20th and overturned Biden’s order.
Certainly, companies involved in the development of major LNG export projects want to move on to their first shipment as quickly as possible. After all, the faster a project starts generating revenue, the faster it will be payable and the higher the return on investment. That is the overall goal of entering this high-growth industry. Clearly, unexpected delays in the development process can lead to major cost overruns that are bothering major infrastructure projects.
On the other hand, these are highly complex and capital-intensive projects that are subject to all kinds of delay factors. As developers have experienced in recent years, supply chain disruptions caused by factors related to the Covid-19 pandemic have resulted in significant delays and excessive costs for projects in all aspects of the economy.
LNG industry developers argue that this arbitrary timeline is too restrictive and that these and other factors could be extended beyond seven years. Trump responded to these concerns, and moved quickly to eliminate this requirement, pledging to strengthen America’s energy control. On Tuesday, Reuters reported that the US had withdrawn the policy, freeing LNG projects from strict timelines and potentially accelerated completion.
This policy reversal could indicate a broader approach to infrastructure under Trump. Infrastructure Investment and Employment Lawwhich was enacted in 2021 and is funded to allocate $1.2 trillion to rebuild roads, bridges, broadband and other critical systems, and is intended to be awarded over more than five years, but some projects have naturally expanded beyond that for construction timelines. The seven-year LNG deadline was a certain energy-related constraint, but the Trump administration has more generally shown an willingness to suspend or redirect funding for Biden-era infrastructure. For example, Trump’s January 20th executive order, “Unleashing American energy” Institutions directed to suspend payments under IIJA and IRA will suspend a 90-day review and raise questions about whether similar time band restrictions between infrastructure sectors will be eased or eliminated.
Critics argue that dropping deadlines would stall the project indefinitely, undermining the urgency that Biden had tried to instill modernize US infrastructure. Supporters argue that developers already have incentives for all profit fluctuations to proceed as quickly as possible and to view the elimination of this limit as a practical adjustment, allowing states and private companies the flexibility to navigate permits, labor shortages and supply chain issues.
For example, the $294 billion unnamed IIJA fund, including a $87.2 billion competitive grant, is currently categorized in Trump’s scope, allowing his more energy-focused administration to prioritize projects that align with energy and economic goals around Biden’s climate-focused initiative.
Ultimately, Trump’s decision to close the seven-year LNG deadline exemplifies his intention to restructure his infrastructure policy by prioritizing speed, flexibility and industry needs. It remains unclear whether this will formally expand to all US infrastructure projects, but given the objectives and priorities stated by the Trump White House, it is likely.
The move also clearly aligns with the overall Trump philosophy of not getting in the way of government, allowing markets to work and the business community to restore American energy domination in the quickest way possible.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialised in public policy and communication.
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