Input Stories

The Biden administration’s recent decision to stop approving new export licenses for U.S. liquefied natural gas is “likely to disrupt plans for billions of dollars in projects,” according to Bloomberg News (subscription).

What’s going on: Last Friday, the White House paused the issuing of new permits while the Department of Energy reviews “how the shipments affect climate change, the economy and national security.”

• The freeze on permits will not affect export authorizations that have been granted already.
• No “firm timeline” was given for the review process.

Why it’s important: The U.S. is the world’s top exporter of LNG, an affordable, plentiful energy source that’s in growing demand—especially in Europe, where it is “enabling [the continent] to power its economy without Russian gas.”

• The U.S. has seven LNG operations up and running, as well as 10 other LNG projects that have gotten export approval by the DOE but remain in development.
• “Four projects will be hardest hit because they have gone through initial permitting and undergone a separate required review by the Federal Energy Regulatory Commission yet are effectively blocked without a final export license from the Energy Department.”

The NAM says: “Once again the Biden administration’s agencies are undercutting President Biden’s own stated goals,” said NAM President and CEO Jay Timmons. The “decision weakens our country while giving Russia an upper hand as Europe and Asia look to transition their energy needs.”