Unlocking our Domestic LNG Potential Act of 2025

The bill would amend Section 3 of the Natural Gas Act to strip out the existing provisions that require Department of Energy approval for natural gas imports and exports, including requirements tied to free trade agreements. It would give the Federal Energy Regulatory Commission exclusive authority to approve or deny applications for the siting, construction, expansion, or operation of any facility — including liquefied natural gas terminals — used to import or export natural gas. FERC would be required, by statute, to treat any such importation or exportation as consistent with the public interest, eliminating case-by-case public interest review of export volumes.

The bill would not disturb the President's existing authority under laws such as the International Emergency Economic Powers Act or the Trading With the Enemy Act to restrict trade with sanctioned countries or state sponsors of terrorism. Other federal agencies' responsibilities related to LNG facilities — such as safety or environmental reviews — would also remain unaffected unless specifically addressed elsewhere in the Natural Gas Act.

Natural gas producers, LNG exporters, and terminal operators seeking federal authorization to ship gas overseas or receive imports, who would now deal solely with FERC instead of DOE. Foreign buyers of U.S. LNG and importing companies would also be affected, as would communities near existing or proposed LNG terminal facilities subject to FERC oversight.

Currently, DOE applies a public interest test before authorizing LNG exports, which can slow or block projects. Removing that review and mandating that FERC treat all export and import applications as in the public interest would make it significantly easier and faster to obtain federal authorization, expanding U.S. LNG trade capacity. Critics argue it removes a meaningful check on export volumes and their effect on domestic energy prices.

Once enacted, FERC would become the single federal gatekeeper for LNG facility approvals. Applicants would file with FERC rather than separately seeking DOE authorization. Because the bill mandates that FERC deem all exportation and importation consistent with the public interest, FERC's discretion on that threshold question would be eliminated; remaining review would focus on facility siting, construction, and operational requirements. No new rulemaking deadline is specified, though FERC would need to adapt its application procedures. Presidential and sanctions-based trade restrictions would continue to operate independently outside the FERC process.