Environment

Biden’s Pause on LNG Export Approvals Riles Republicans

Republicans have been raising concerns for weeks about a possible administration clampdown on natural gas exports. Now that it’s official, expect the congressional pushback to intensify.

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The Calcasieu Pass liquefied natural gas terminal is in Louisiana. Venture Global LNG is planning a similar facility next door called CP2.
Source: Venture Global LNG

Republicans have been raising concerns for weeks about a possible administration clampdown on natural gas exports. Now that it’s official, expect the congressional pushback to intensify.

The Biden administration has said it would pause approvals for liquefied natural gas (LNG) export terminals—possibly until after the November presidential election—citing a need to better assess climate and economic considerations of pending licenses.

Republicans expressed befuddlement and anger as word of the administration’s intentions spread. The pause would affect numerous other proposed terminals.

Sen. Bill Cassidy (R-La.), whose state is a big LNG exporter, had called the expected decision “shortsighted” and “absurd.” His colleague, Sen. John Kennedy (R-La.), had sent the Department of Energy a letter earlier this month warning against any new red tape.

Many Democrats cheered the move. Energy and Natural Resources Chair Joe Manchin (D-W.Va.), a frequent critic of the president, appeared open to the idea. He said he planned to hold a hearing on the matter.

In announcing the decision, Energy Secretary Jennifer Granholm argued, “It’s not unprecedented.” She also noted that the US is “the world’s largest LNG exporter, with capacity set to nearly double by 2030.”

She added, “As our exports increase, we must review export applications using the most up-to-date analysis of the economic, environmental, and national security considerations.”

The pause had already incensed Republicans, with some calling it a “functional ban.” Officials said it would last “some months” and be followed by a public comment period.

Republicans argued it would hurt European allies already affected by Russia’s war on Ukraine. Europe has been relying on LNG imports to make up for lost Russian supplies. Europe imported roughly 10% of its natural gas from Russia in late 2023, down from about 40% in 2021.

Sen. Lisa Murkowski (R-Alaska), said, “I can’t even pretend to understand the calculus in an administration that would trade away our energy security and think that that helps us as a country.”

Advocates of climate action and their Democratic allies in Congress praised the move. Many said constructing new LNG terminals would “lock in” the use of the fossil fuel for years to come.

The Sierra Club’s executive director, Ben Jealous, called the pause a “bold and historic decision” and “one of the most important moves President [Joe] Biden could make on addressing the climate crisis.”

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