Citing environmental concerns, the White House announced Friday a hold on permitting decisions affecting the export of liquefied natural gas (LNG) to countries with which the United States does not have free trade agreements.
Critics expect the decision will reduce U.S. energy independence and lead to layoffs for natural gas workers.
Multibillion-dollar projects are facing major disruptions, including delays to new natural gas export terminals as U.S. gas exports to Europe soar since Russia’s invasion of Ukraine.
The suspension will be in effect at least until the Department of Energy provides updated economic and environmental analyses, reported CNBC.
According to the White House, the Energy Department is using outdated environment analyses on natural gas export terminals:
They “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,” the White House said.
The pause allows for exceptions to be made for unanticipated and immediate national security emergencies.
Liquified natural gas is a natural gas that has been cooled to a liquid state to allow for shipping and storage, according to the Energy Department. Any companies that want to export natural gas are required to obtain authorization from the department’s Office of Fossil Energy and Carbon Management.
President Joe Biden said in a statement that his administration will take a “hard look at the impacts of LNG exports on energy costs” during this period as well as “America’s energy security, and our environment.”
Oil and gas industry advocates wrote a letter to Energy Secretary Jennifer Granholm in January objecting to the changes.
“This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time,” Biden responded Friday. “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.”
Speaking to reporters, Granholm said the delay “will not affect already authorized exports, nor will it impact our ability to supply our allies in Europe, Asia or other recipients of already authorized exports.”
“And if needed, the department can determine if exceptions should be made for national security needs,” she added.
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