S. 1035 — A bill to prohibit certain exports of natural gas produced or refined in the United States, and for other purposes.

This section states congressional findings that U.S.-produced or refined natural gas should be exported from domestic terminals rather than Mexico due to economic and national security concerns, citing Mexico's corruption ranking (140th out of 180 countries in the 2024 Transparency International Corruption Perceptions Index), rampant fuel theft (including at least four illegal stations per legal station as of 2020 and state involvement), Pemex corruption, 2024 judicial reforms politicizing the judiciary, and violations of U.S.-Mexico-Canada Agreement energy commitments favoring state-owned entities over private and foreign investors.

This section prohibits any person from exporting natural gas produced or refined in the United States to a foreign country with the intent of further exporting that natural gas through a foreign LNG terminal (i.e., onshore or in-state-waters facilities used to receive, unload, load, store, transport, gasify, liquefy, or process imported/exported natural gas, as defined in the Natural Gas Act).