The January-move of the Biden administration on LNG export permits challenged by 16 states’ attorneys general

Attorney General Murrill calls that move an “unlawful decision to ban new liquefied natural gas (LNG) exports.” The State of Louisiana is joined in the suit by the States of Alabama, Alaska, Arkansas, Florida, Georgia, Kansas, Mississippi, Montana, Nebraska, Oklahoma, South Carolina, Texas, Utah, West Virginia, and Wyoming.

“On January 26, 2024, President Biden and his Department of Energy halted all new approvals of LNG exports to non-Free-Trade Agreement countries effective immediately,” says the Louisiana Attorney General’s office. “This decision ignores the clear text of the Natural Gas Act and departs from decades of agency policy. Just six months ago, the Department of Energy even acknowledged, ‘There is no factual or legal basis’ for halting approval of LNG exports.

“Biden’s decision causes serious harm to Plaintiff States, local communities counting on LNG-related investment, and the energy sector itself. This ban will also disrupt the development and production of natural gas and gives us no choice but to turn to the courts to enforce the law.” The administration decision has been widely condemned by industry.

“Pausing U.S. LNG export permits will have detrimental effects on the U.S., the Gulf Coast, and our allies, disrupting a crucial global energy source that offers stability and affordability. This decision also puts a pause to billions of dollars in investments along the Gulf Coast,” said the National Ocean Industry Association, when the pause was announced.

“Ordinary citizens in the U.S. and Europe will bear the costs of arbitrarily forfeiting a competitive market advantage to countries like Russia, a major LNG exporter. While Europe primarily imports LNG from the U.S., it still receives a substantial amount from Russia, which will undoubtedly exploit the decision.

“Moreover, tens of thousands of jobs and billions in wages along the Gulf Coast are tied to the growth of LNG facilities…“Overall, the U.S. LNG export permitting pause will diminish energy security, stability, and affordability, while impeding progress in emission reduction efforts.A new poll recently carried out by the National Association of Manufacturers showed bipartisan opposition to the freeze on export permits for new LNG projects. The NAM analytics team conducted the poll March 15–18 and collected 1,000 responses from a nationwide sample of registered voters. You can see the full results here, but key findings were: 87% of respondents agree the U.S. should continue to export natural gas; 76% of respondents agree with building more energy infrastructure, such as port terminals, here in the U.S; 74% of respondents agree with boosting production of domestic oil and natural gas in the U.S. instead of depending heavily on foreign energy sources; 72% of respondents prefer that American energy policy use an all-of-the-above strategy that includes oil and natural gas and renewable energy sources and 86% of respondents agree that we should change the permitting system so it doesn’t take so long for new energy infrastructure projects to be approved…

“…The administration’s misguided LNG freeze threatens American jobs and jeopardizes global energy security,” API senior vice president of policy, economics and regulatory affairs Dustin Meyer said…