SEATTLE (Oil Monster): The White House issued a presidential determination on Monday authorizing the use of the Defense Production Act to accelerate the expansion of natural gas transmission, processing, storage, and liquefied natural gas capacity across the United States.
The memorandum, directed to the Secretary of Energy, classifies natural gas and LNG infrastructure as essential to national defense. This includes gathering and transmission pipelines, compression facilities, processing plants, underground storage, LNG liquefaction facilities, storage and marine loading operations, export facilities, and critical distribution infrastructure.
The determination cites Executive Order 14156, issued on January 20, 2025, which declared a national energy emergency. That order stated that hostile foreign actors have weaponized America’s reliance on foreign energy and used it to cause dramatic swings in international commodity markets.
The presidential memorandum finds that without action under Section 303 of the Defense Production Act, United States industry cannot reasonably be expected to provide these capabilities in a timely manner. The document points to financing constraints, long-lead equipment and construction schedules, permitting delays, and infrastructure bottlenecks as key obstacles.
The determination waives certain requirements of the Act to enable faster implementation. The Secretary of Energy is authorized to make necessary purchases, commitments, and financial instruments to enable these projects.
The memorandum states that inadequate pipelines, processing, storage, or natural gas and LNG export capacity would leave the United States and its partners dangerously exposed in times of crisis.
Courtesy: www.investing.com
