Biden Pauses New Natural Gas Export Projects

Topline

In a controversial decision praised by environmentalists and criticized by the oil and gas industry, the Biden Administration announced Friday a temporary pause on pending approvals of liquefied natural gas (LNG) export facilities.

A liquefied natural gas (LNG) tanker arrives at a gas storage station at Sodegaura city in Chiba … [+] prefecture, east of Tokyo on April 6, 2009 for the first shipment of LNG from Sakhalin-2 natural gas development project in Sakhalin, Russia. AFP PHOTO / JIJI PRESS (Photo by JIJI PRESS / AFP) / Japan OUT (Photo by STR/JIJI PRESS/AFP via Getty Images)

JIJI PRESS/AFP via Getty Images

Key Facts

The White House said the reason for the pause was to allow the Energy Department to update underlying analyses it uses to make approvals of LNG projects, as the White House says those analyses are five years old and “no longer adequately account” for the projects’ potential impact on energy costs or the environment.

In a statement, Biden framed the decision as a key part of his climate agenda, and amid an election year, sought to use the pause to contrast against “MAGA Republicans” who “willfully deny the urgency of the climate crisis.”

Environmentalists praised the decision, with Sierra Club Executive Director Ben Jealous calling the decision a “bold step” that “makes it clear that the Biden administration is listening to the calls to break America’s reliance on dirty fossil fuels.”

Energy Secretary Jennifer Granholm told media outlets Thursday that the pause won’t affect exports that have already been greenlit, and that there would be exceptions for national security emergencies.

Key Background

The U.S. is the number one exporter of LNGs, per the White House fact sheet. Proponents argue that LNG exports are an economic boon that gives the U.S. more geopolitical leverage—its exports to Europe have helped the E.U. break its reliance on Russia amid the Russia-Ukraine War. But environmentalists have denounced the continued buildout of LNG export infrastructure as a commitment to continued long-term use of fossil fuels, with facilities burdening the local communities where they are built. The announcement comes as activists have recently targeted one project in particular, the so-called CP2 export facility proposed in Louisiana. The New York Times reported earlier this week that the White House was weighing a pause of this project, but CNN noted on Friday, citing administration officials, that CP2 would not be immediately affected by Friday’s pause because it has not yet received Federal Energy Regulatory Commission approval, which it needs before seeking Energy Department approval.

Contra

Proponents of new LNG projects were quick to denounce the decision. U.S. Rep. Dusty Johnson (R-S.D.) wrote on X that the pause “will hurt our economy and threaten energy affordability and dependability for our allies forcing them to rely on countries like Russia,” while U.S. Rep. Max Miller (R-Ohio) said that blocking LNG exports “will only help Russia, Iran & China.” A spokesperson for Venture Global, the company behind the CP2 project, told CBS News that the Biden administration “continues to create uncertainty about whether our allies can rely on U.S. LNG for their energy security.”