Biden’s decision: No new natural gas export terminals for Russia
President Biden Freezes Consideration of New LNG Export Terminals
In a move that industry leaders are calling a “win for Russia,” President Joe Biden has put a freeze on the consideration of new liquefied natural gas (LNG) export terminals.
This action suspends the approval process for pending permits until the Department of Energy updates its review process for the economic and environmental impacts of these authorizations. Exceptions can be made for immediate national security emergencies, and terminals that have already been authorized but are not yet operational will not be affected.
“This decision is a victory for Russia and a setback for American allies, U.S. jobs, and global climate progress,” stated American Petroleum Institute president Mike Sommers. “There is no need for a review to understand the clear benefits of U.S. LNG in stabilizing global energy markets, supporting American jobs, and reducing emissions worldwide by transitioning countries to cleaner fuels. This is simply a broken promise to our allies, and it’s time for the administration to prioritize global energy security over politics.”
The administration had previously acknowledged the importance of U.S. LNG exports in supporting allies in Europe during Russia’s invasion of Ukraine, preventing President Vladimir Putin from using natural gas as a weapon.
“Our liquefied natural gas exports have been a significant help to our allies, and it’s crucial to ensure they have the means to access it. We are fortunate to have an abundance of natural gas in this country,” said Secretary of Energy Jennifer Granholm in January 2023. “Our prices are low, but during challenging times, we want to assist our allies as well.”
The White House, in a statement on Friday, reassured that the United States can still supply Europe with LNG despite the pause.
“The U.S. is already the leading exporter of LNG globally, and our exports are expected to double by the end of the decade,” read a White House fact sheet. “We remain committed to supporting our allies worldwide, and today’s announcement will not hinder our ability to continue supplying LNG in the near future.”
This announcement comes just two days after President Biden ordered a review of the climate, economic, and national security impacts of what could be the largest LNG export terminal in the country, resulting in a delay in its approval.
Prior to this decision, members of the administration met with a 25-year-old TikTok influencer who had launched a social media campaign urging young voters to pressure Biden to reject the proposed project, according to the New York Times.
What are the concerns raised by industry leaders regarding the freezing of consideration for new LNG export terminals?
Chemical Council President and CEO Chris Jahn. “LNG exports not only strengthen our national security but also provide economic benefits and help reduce global emissions by displacing coal in other countries.”
The freezing of consideration for new LNG export terminals has raised concerns among industry leaders, who argue that it goes against the goal of achieving energy independence and hampers the growth of the LNG sector. The United States has seen a tremendous increase in LNG exports in recent years, becoming one of the world’s leading exporters, thanks to advancements in shale gas production.
The decision comes amidst increasing tensions between the United States and Russia. Russia has long been a dominant player in the global LNG market, with its state-owned company Gazprom holding a significant market share. By putting a freeze on new LNG export terminals, President Biden’s decision could potentially benefit Russia by limiting competition and maintaining its stronghold in the market.
The move has received criticism from both sides of the political spectrum. Republicans argue that the decision undermines American energy security and job creation, while some Democrats argue that it goes against the administration’s commitment to tackling climate change by reducing greenhouse gas emissions. They believe that LNG exports can play a role in reducing global emissions by replacing coal in countries that still heavily rely on it for their energy needs.
The American natural gas industry has made significant investments in expanding LNG export capacity, which has created thousands of jobs and stimulated economic growth. The freeze on new terminals could have a detrimental impact on these investments and the industry’s long-term prospects.
It remains to be seen how long this freeze will last and what impact it will have on the LNG sector. President Biden has emphasized the need to address climate change and transition towards clean energy sources. It is likely that his administration will carefully review the economic and environmental impacts of LNG exports before making any further decisions regarding new terminals.
In the meantime, the industry will continue to advocate for the importance of LNG exports and their role in bolstering national security, creating jobs, and reducing global emissions. They will also stress the need for a balanced approach that considers economic and environmental factors when evaluating energy projects.
President Biden’s decision to freeze consideration of new LNG export terminals has sparked a debate about the future of the American LNG industry and its implications for the country’s energy security and climate change goals. As the discussion unfolds, stakeholders from both sides must work together to find common ground and ensure a sustainable and prosperous energy future for the nation.
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