The head of the largest U.S. oil and gas lobby group, the American Petroleum Institute (API), has issued a warning that slowing down or halting the approval process for liquefied natural gas (LNG) exports would put allies in Europe and Asia at risk. This comes as the Biden administration considers incorporating climate change criteria into the approvals for LNG terminals or expansions. The API argues that U.S. LNG exports help reduce global emissions by displacing coal overseas. However, environmentalists are urging the administration to prioritize domestic fossil fuel projects’ halt and adhere to campaign promises and international climate commitments.
Under the Biden administration, the approval process for LNG export permits has lengthened significantly compared to the previous Trump administration, with reviews taking 11 months or more. This shift comes as the Biden administration balances the demand for U.S. LNG from European allies seeking to reduce their dependence on Russian gas. Simultaneously, environmentalists are pressuring the administration to expedite the transition away from fossil fuels.
The U.S. has become the world’s largest exporter of LNG, even as the Biden administration aims to move away from fossil fuels. Environmentalists have been calling for a halt to future approvals for LNG exports, including the proposed Venture Global’s Calcasieu Pass 2 (CP2) project in Louisiana. The project is awaiting approval from the Federal Energy Regulatory Commission and export authorization from the U.S. Department of Energy (DOE).
The debate over LNG approvals revolves around whether to factor in climate change considerations when deciding if a gas export project meets national interest. Recent reports suggest that officials from the DOE and White House have been holding meetings on this issue. However, the DOE has not provided an update on its LNG approval process.
Venture Global, the company behind the CP2 project, argues that American LNG is crucial in combatting climate change as it helps displace global coal use. Environmental groups plan to hold a sit-in at the DOE in an effort to halt the licensing of new LNG terminals. They are also pressuring the Biden administration to fulfill its campaign promises and international climate commitments, particularly after the U.S. agreed with nearly 200 countries to transition away from fossil fuel production.
As the Biden administration navigates the demand for U.S. LNG exports, concerns about climate change, and pressure from environmentalists, the future of LNG approvals remains uncertain. Balancing the interests of allies in Europe and Asia, reducing global emissions, and addressing domestic concerns will require careful consideration from policymakers.
In conclusion, the American Petroleum Institute has warned that slowing down or halting LNG approvals could put allies at risk, while environmentalists argue for a halt to domestic fossil fuel projects. As the Biden administration seeks to transition away from fossil fuels, it faces the challenge of balancing international demand for U.S. LNG, reducing global emissions, and addressing climate change concerns. The future of LNG approvals under this administration remains a point of contention and uncertainty.
