Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Natural Gas Transmission, Processing, Storage, and Liquefied Natural Gas Capacity

This memorandum, issued alongside the previous determination on coal, completes a two-pronged strategy to use the Defense Production Act (DPA) to overhaul the American energy landscape. While the coal memorandum focused on domestic grid reliability, this document focuses on geopolitical influence and infrastructure expansion regarding natural gas and Liquefied Natural Gas (LNG). By invoking Section 303 of the DPA, the administration effectively reclassifies natural gas infrastructure as a matter of national security rather than just a commercial enterprise. The core of this memorandum is the "weaponization" of energy by foreign actors. Allied Security: Unlike the coal memo, which is inward-looking, this memo frames U.S. LNG capacity as a tool of foreign policy. It suggests that by exporting more gas, the U.S. can weaken the leverage held by hostile nations (such as Russia or Middle Eastern actors) over American allies (specifically in Europe and Asia). National Defense Link: It argues that "inadequate pipelines" and "export capacity" leave the U.S. and its partners "dangerously exposed," thereby making gas infrastructure a "critical technology item" essential to the national defense. The memorandum identifies a very broad range of the natural gas "midstream" and "downstream" sectors as essential: Gathering and Transmission Pipelines: The lines that move gas from the wellhead to the market. Processing and Compression: Facilities that clean the gas and keep it moving through pipes. Liquefaction and Marine Loading: The multi-billion dollar terminals required to turn gas into liquid for transport on ships. Underground Storage: Essential for managing seasonal demand and supply shocks. A significant part of this determination is designed to bypass traditional obstacles to energy projects: Permitting and Regulatory Delays: Natural gas pipelines and LNG terminals often face years of litigation and environmental review (under laws like NEPA). By declaring these projects "essential to the national defense" under the DPA, the administration seeks to provide a legal and political fast-track. Financing Constraints: High interest rates and "ESG" (Environmental, Social, and Governance) investment trends have made it harder for some fossil fuel projects to secure private capital. Under the DPA, the Secretary of Energy can now offer loan guarantees, purchase commitments, or direct subsidies to ensure these projects move forward regardless of private market sentiment. Just as in the coal memo, the President uses the National Energy Emergency (EO 14156) to waive several legal requirements. Normally, DPA projects require a 30-day notice to Congress and a detailed "cost-effective" analysis before large sums of money are spent. The waiver allows the Department of Energy to act immediately to fund or guarantee the construction of pipelines and LNG terminals, citing the "emergency" as the reason for the lack of standard oversight. If implemented, this directive would likely lead to: A "Green Light" for Stalled Projects: Pipelines that have been held up in court or denied state-level permits (such as those in the Northeast or Appalachia) may receive federal backing to proceed. LNG Build-out: The "pause" on new LNG export licenses (which occurred in 2024) would not only be lifted but replaced by a policy of federal financial support for new terminals. Supply Chain Prioritization: Under the DPA, the government can force private manufacturers to prioritize orders for the gas industry (e.g., specialized steel for pipes or turbines for compression stations) ahead of other commercial customers.