A bill to prohibit certain exports of natural gas produced or refined in the United States, and for other purposes.
S.1035 is a Senate bill that would restrict exports of natural gas produced or refined in the United States in cases where the exporter intends to route the gas to a foreign country and then re-export it through a foreign LNG (liquefied natural gas) terminal. The bill begins with a series of findings asserting concerns about corruption and national security related to Mexico and argues that exporting U.S.-produced gas for re-export via foreign LNG terminals is not in U.S. national interest. The operative provision, Section 2, would override other laws to prohibit such exports when the export is intended for re-export through a foreign LNG terminal. The measure does not ban all U.S. natural gas exports outright; rather, it targets the specific scenario in which the gas is exported with the intent to be re-exported via foreign LNG infrastructure.
Key Points
- 1Section 1 (Findings) sets out the bill’s rationale, focusing on perceived corruption and governance concerns in Mexico, national security implications, and the belief that re-exporting U.S.-produced gas via foreign LNG terminals is not in the United States’ national interest.
- 2Section 2 (Prohibition) prohibits, “notwithstanding any other provision of law,” the export of any natural gas produced or refined in the United States to a foreign country if the export is intended to be re-exported through a foreign LNG terminal (as defined by the Natural Gas Act).
- 3The prohibition relies on an intent standard (the exporter’s intent to re-export via a foreign LNG terminal), rather than a blanket ban on all U.S. natural gas exports.
- 4The bill references the Natural Gas Act for the definition of a “foreign LNG terminal,” tying the prohibition to existing regulatory terminology.
- 5No specific enforcement mechanism, penalties, or implementation timeline are provided in the text as introduced.