U.S. liquefied natural gas (LNG) project developers are moving closer to final investment decisions (FID) on several new export facilities this year. These projects, expected to come online by 2025, will add to Woodside’s recently approved Louisiana LNG project. This comes despite rising construction costs caused by President Trump’s steel and aluminum tariffs.
Top executives from major LNG companies expressed confidence during recent earnings calls that they would approve their projects soon.
At least seven U.S. LNG projects are targeting FID this year, according to a Reuters review of company statements. If all proceed, U.S. LNG export capacity could nearly triple by 2030, building on projects already under construction from previous approvals.
To reduce financial risks, some developers plan to sell stakes in their projects to infrastructure funds or industry partners. They are also working to secure long-term offtake agreements for the LNG output.
Developers are trying to source more steel from U.S. suppliers to lessen the impact of tariffs. While President Trump has paused retaliatory tariffs for now, a 25% tariff on steel and aluminum and a 10% tariff on all imports remain in place. Companies acknowledge possible tariff exposure but say they are taking steps to manage cost increases.
Australia’s Woodside was the first to take FID this year, approving its Louisiana LNG project in April. Woodside acquired the project, formerly known as Driftwood LNG, through its $1.2 billion purchase of Tellurian last year.
Before the FID, Woodside sold 40% of the Louisiana LNG project to infrastructure firm Stonepeak. Stonepeak will provide $5.7 billion toward the facility’s initial capital costs.
Last week, Woodside signed a non-binding deal with Saudi Arabia’s Aramco to explore Aramco’s possible investment and LNG offtake from Louisiana LNG.
More FIDs for U.S. LNG projects are expected throughout 2025.
Jack Fusco, CEO of Cheniere, the largest U.S. LNG exporter, said on their Q1 earnings call that they expect to get all required approvals to move forward with the Corpus Christi expansion project, trains 8 and 9, in 2025.
Sempra, which is developing the Port Arthur LNG project, plans to make an FID on Phase II by the end of 2025. CFO Karen Sedrick noted strong commercial interest but warned that macroeconomic uncertainty could affect project timing. She said the company will remain patient to manage cost risks and secure favorable long-term deals.
To avoid tariff impacts, Port Arthur LNG began admitting materials into U.S. foreign trade zones in February. CEO Jeff Martin said all steel for Port Arthur LNG train one was sourced domestically. He estimated remaining tariff exposure for Phase I to be only about 1% of capital expenditures.
Energy Transfer aims to approve its Lake Charles LNG export project in Louisiana by the end of this year, as it moves forward with LNG offtake contracts.
Venture Global is seeking Federal Energy Regulatory Commission (FERC) approval for its third liquefaction plant, CP2 in Louisiana, by mid-2025. CEO Mike Sabel praised the supportive regulatory environment and bipartisan political backing. He said the company has started the FID process for Phase one of CP2 with its banking partners.
Overall, U.S. LNG developers remain optimistic about expanding export capacity, despite tariff challenges and economic uncertainties.
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