EnergyNow.com (January 26, 2024) – The Biden administration on Friday halted the approval of new licenses to export US liquefied natural gas while it scrutinizes how the shipments affect climate change, the economy and national security — a moratorium likely to disrupt plans for billions of dollars in projects.
The Energy Department study will build on an existing analysis that underpins the agency’s review of proposals to send more natural gas to European, Asian and other countries that are not US free-trade partners. New exports are now vetted on a case-by-case basis to see whether they are in the public interest.
“We will take a hard look at the impacts of LNG exports on energy costs, America’s energy security and our environment,” President Joe Biden said in a statement. “This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.”
The review, which won’t affect previously granted authorizations or immediately shake the US status as the world’s top LNG exporter, will be conducted by the Energy Department’s national labs.
It could stretch for months before a report is made available for public comment. Senior administration officials who briefed reporters on the plan would not put a firm timeline on the process, saying only that it would be done expeditiously and take some months.
The pause could have implications for more than a dozen proposals now awaiting review at the Energy Department, including ventures planned in Louisiana by Commonwealth LNG and Energy Transfer LP.
The issue is politically fraught for Biden — forcing him to balance an array of competing priorities. A months-long review would effectively foreclose decisions on additional LNG exports until after the Nov. 5 presidential election.
At the same time, Republicans — including former President Donald Trump — have accused Biden of making a priority of his climate agenda at the expense of domestic jobs and other economic concerns.
On Wednesday, Senate Republican leader Mitch McConnell asserted that limiting LNG exports would hinder the US goal of combating Russia’s influence as a global gas supplier.
