May 5, 2024

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Joe Biden halts permits for LNG projects under climate campaign pressure

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The Biden administration will indefinitely pause approvals for new liquefied natural gas export terminals along the US coastline, dealing a blow to a booming industry and giving a win to climate campaigners. 

The US is the world’s biggest exporter of LNG, with the number of cargoes shipped growing rapidly since the first set sail from Louisiana in 2016. The European energy crisis triggered by Vladimir Putin’s full-scale invasion of Ukraine bolstered demand as countries searched to replace gas piped in from Russia. 

But the US industry’s multibillion-dollar liquefaction plants have become a target for climate activists who argue the rapidly expanding infrastructure will lock in reliance on fossil fuels for decades to come.

The pause from the Department of Energy will temporarily halt pending applications from 17 projects awaiting approval to proceed.

The move comes as President Joe Biden enters an election year keen to secure the support of younger and climate-conscious voters who helped him win his first term. Many felt let down after the administration gave a greenlight to ConocoPhillips’ Willow oil project on federal land in Alaska last year.

“During this period, we will take a hard look at the effects of LNG exports on energy costs, America’s energy security, and our environment,” Biden said. “This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.”

US energy secretary Jennifer Granholm told reporters that as US LNG exports surged it was “critical” for the her department to “remain a responsible actor” as it looked at whether the additional volumes were “in the public interest”, a determination required under federal law.

“The pause will not affect already-authorised exports, nor will it impact our ability to supply our allies in Europe, Asia or other…



2024-01-26 05:00:39

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