Biden Halts New Natural Gas Export Projects

Topline

The Biden Administration has made a controversial decision that has been praised by environmentalists and criticized by the oil and gas industry. They announced a temporary pause on pending approvals of liquefied natural gas (LNG) export facilities, a move which has received mixed reactions.

A liquefied natural gas (LNG) tanker arrives at a gas storage station at Sodegaura city in Chiba … [+] prefecture, east of Tokyo on April 6, 2009 for the first shipment of LNG from Sakhalin-2 natural gas development project in Sakhalin, Russia. AFP PHOTO / JIJI PRESS (Photo by JIJI PRESS / AFP) / Japan OUT (Photo by STR/JIJI PRESS/AFP via Getty Images)

JIJI PRESS/AFP via Getty Images

Key Facts

The White House stated that the pause was necessary to update the underlying analyses used by the Energy Department to approve LNG projects. The analyses are five years old and do not adequately account for the projects’ potential impact on energy costs or the environment.

President Joe Biden framed the decision as a key part of his climate agenda. He aimed to contrast the pause against “MAGA Republicans” and emphasized the urgency of the climate crisis, especially during an election year.

Environmentalists have lauded the decision, with Sierra Club Executive Director Ben Jealous calling it a “bold step” that “makes it clear that the Biden administration is listening to the calls to break America’s reliance on dirty fossil fuels.”

Energy Secretary Jennifer Granholm told media outlets that the pause won’t affect exports that have already been greenlit, and that there would be exceptions for national security emergencies.

Key Background

The U.S. is the number one exporter of LNGs, according to the White House fact sheet. Proponents argue that LNG exports are an economic boon and provide the U.S. with more geopolitical leverage. However, environmentalists have denounced the continued buildout of LNG export infrastructure as a commitment to continued long-term use of fossil fuels. The announcement comes as activists have recently targeted one project in particular, the so-called CP2 export facility proposed in Louisiana.

Proponents of new LNG projects were quick to denounce the decision. U.S. Rep. Dusty Johnson (R-S.D.) wrote on X that the pause “will hurt our economy and threaten energy affordability and dependability for our allies forcing them to rely on countries like Russia,” while U.S. Rep..

» …
Read More rnrn