US Federal Senate Bill SB1035

US Federal 2025-2026 Regular Session

• Introduced: 3/13/25
• Refer: 3/13/25

Caption

A bill to prohibit certain exports of natural gas produced or refined in the United States, and for other purposes.

Summary

SB1035 would prohibit exports of U.S.-produced or U.S.-refined natural gas when the exporter intends for that gas to be re-exported through a foreign LNG terminal. In practical terms, the bill targets a specific export pathway in which natural gas leaves the United States for a foreign country and is then shipped onward from that country’s liquefied natural gas infrastructure. The bill’s stated purpose is to keep that gas from moving through countries the sponsor describes as having corruption, weak rule of law, or trade and energy policy concerns, with Mexico identified prominently in the findings. The findings section argues that exporting U.S. natural gas through Mexico raises economic, national security, and trade concerns. It cites corruption allegations, fuel theft, threats to energy workers, and concerns about Mexico’s judicial and regulatory independence, as well as alleged violations of U.S.-Mexico-Canada Agreement commitments. The bill does not broadly ban exports of natural gas to all foreign markets; rather, it focuses on exports that are intended to be routed onward through a foreign LNG terminal.

Impact

The bill would add a new federal restriction on natural gas exports by making it unlawful to export U.S.-produced or refined natural gas to a foreign country if the intent is to re-export it through a foreign LNG terminal. This would affect exporters, traders, and companies involved in cross-border LNG supply chains, especially arrangements that use Mexico as an intermediate destination before final export. It would operate notwithstanding other law, so it would supersede conflicting federal provisions to the extent of the prohibition.

Sentiment

There is no recorded committee debate or vote history in the provided materials, so formal legislative sentiment cannot be measured from action data. The bill text itself reflects a strongly skeptical and protective stance toward routing U.S. natural gas through Mexico, framing the issue as one of corruption, trade integrity, and national security. Based on the findings, the sponsor’s position is clearly supportive of restricting these exports, while the bill appears designed to address concerns about foreign handling of U.S. energy exports.

Contention

The main point of contention is likely whether the federal government should restrict a specific export route based on concerns about Mexico’s governance, energy policy, and compliance with trade commitments. Supporters would likely emphasize national security, anti-corruption, and protection of U.S. energy interests, while opponents may argue the bill could disrupt legitimate trade, reduce market flexibility, and create diplomatic or commercial friction with Mexico and other partners. Another likely issue is the bill’s reliance on broad findings about corruption and regulatory weakness in Mexico, which could be viewed as politically charged or overinclusive.