The White House on Monday issued a presidential determination authorizing the use of the Defense Production Act (DPA) to expedite the expansion of natural gas infrastructure and liquefied natural gas (LNG) capacity in the United States.
The memorandum, which is addressed to the Secretary of Energy, formally classifies natural gas and LNG infrastructure as essential to national defense. It lists a wide range of facilities and components covered by the determination, including 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 presidential determination cites Executive Order 14156, issued on January 20, 2025, which declared a national energy emergency and stated that hostile foreign actors have weaponized the nation’s reliance on foreign energy, causing significant swings in international commodity markets.
According to the memorandum, Section 303 of the Defense Production Act must be used because, without it, United States industry cannot reasonably be expected to provide the required capabilities in a timely manner. The text identifies several obstacles to timely delivery: financing constraints, long-lead equipment and construction schedules, permitting delays and infrastructure bottlenecks.
To address those obstacles, the determination waives certain requirements of the Act to enable faster implementation and authorizes the Secretary of Energy to make necessary purchases, commitments and to use financial instruments to support the projects covered by the memorandum.
The document underscores the national security rationale for the action, stating 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.
Context and immediate effect
The memorandum directs the Secretary of Energy to employ the DPA authorities outlined in the determination to accelerate projects that expand transmission, processing, storage and LNG capacity. The authorization is structured to address constraints identified in the memorandum by enabling government-supported purchases and financial commitments where required.
Next steps outlined in the memorandum
- The Secretary of Energy is empowered to use purchases, commitments and financial instruments allowed under the Act to enable construction and deployment of the covered infrastructure.
- Certain statutory requirements of the Act are waived to allow more rapid implementation.
- The memorandum frames these steps as necessary to reduce exposure for the United States and its partners in times of crisis.