Confirming earlier reports, the Biden administration on Friday announced it will pause approvals of new liquefied natural gas export facilities to give the Department of Energy more time to update its evaluation process.
In a statement about its decision, the Biden administration said the current analyses DOE is using are outdated and do not adequately consider the impact of climate change, which the administration considers the “existential threat of our time.”
The current economic and environmental analyses DOE uses to underpin its LNG export authorizations are roughly five years old and no longer adequately account for considerations like potential energy cost increases for American consumers and manufacturers beyond current authorizations or the latest assessment of the impact of greenhouse gas emissions. Today, we have an evolving understanding of the market need for LNG, the long-term supply of LNG, and the perilous impacts of methane on our planet. We also must adequately guard against risks to the health of our communities, especially frontline communities in the United States who disproportionately shoulder the burden of pollution from new export facilities. The pause, which is subject to exception for unanticipated and immediate national security emergencies, will provide the time to integrate these critical considerations.
The U.S. is already the number one exporter of LNG worldwide – with U.S. LNG exports expected to double by the end of this decade. At the same time, the U.S. remains unwavering in our commitment to supporting our allies around the world. Today’s announcement will not impact our ability to continue supplying LNG to our allies in the near-term. Last year, roughly half of U.S. LNG exports went to Europe, and the U.S. has worked with the E.U. to successfully economize consumption and manage its storage to ensure that unprovoked acts of aggression cannot threaten its supply. Furthermore, in 2022, the E.U and U.S. pledged to work toward the goal of ensuring additional LNG volumes for the E.U. market – with the U.S. exceeding our annual delivery targets to the E.U. in each of the past two years. Through existing LNG production and export infrastructure, the U.S. has – and will continue – to deliver for our allies. (White House)
President Biden's statement about the decision made it clear he’s trying to win over young voters ahead of the election.
“While MAGA Republicans willfully deny the urgency of the climate crisis, condemning the American people to a dangerous future, my Administration will not be complacent. We will not cede to special interests,” he said.
“We will heed the calls of young people and frontline communities who are using their voices to demand action from those with the power to act,” Biden continued. “And as America has always done, we will turn crisis into opportunity – creating clean energy jobs, improving quality of life, and building a more hopeful future for our children.”
FULL STATEMENT: And it's official. The White House announces a "temporary pause" on pending approvals of American LNG export terminals.
— Javier Blas (@JavierBlas) January 26, 2024
The statement is below, and links here to the comuniqué itself: https://t.co/FHQfDMCsl4 and a White House factsheet: https://t.co/87Hg4T7lj3 pic.twitter.com/NFlXVC34l6
According to The Guardian, "the pause ... could imperil the future of more than a dozen gas export terminals that have been planned for the Gulf of Mexico coast."
The fossil fuel industry blasted the move ahead of Friday's decision.
"Our nation’s abundant supply of natural gas is an impactful geopolitical tool, helping insulate American consumers from increasing global instability while advancing American national interests and ensuring the energy security of key U.S. allies,” a coalition of industry associations wrote in a letter to Energy Secretary Jennifer Granholm on Wednesday.
"Moving forward with a pause on U.S. LNG export approvals would only bolster Russian influence and undercut President Biden’s own commitment to supply our allies with reliable energy, undermining American credibility and threatening American jobs," they continued.
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