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Regulatory Limbo Hamstrings U.S. LNG Exports

By NAM News Room

Regulatory uncertainty in the U.S is the “biggest barrier” to getting liquefied natural gas to Europe, Canadian Natural Resources Minister Jonathan Wilkinson said, POLITICO Pro reports.

What’s going on: “‘The biggest barrier actually has nothing to do with Canada,’ Wilkinson said. ‘It is actually regulatory uncertainty in the United States.’”

  • “Canada does not have export terminals in operation for LNG. Canadian LNG for export to Europe must first ship to the U.S., leaving Canada’s sector vulnerable to statewide regulations.”
  • Instead of increasing domestic production, in recent months the Biden administration had considered banning exports—despite the European Union’s historically low natural gas inventories.

Why it’s important: The U.S. can speed LNG exports to European allies, currently struggling with natural gas shortages, by fast-tracking domestic energy projects and removing permitting barriers, said NAM Vice President of Energy and Resources Policy Rachel Jones.

  • “The lack of certainty concerning regulation of U.S. energy production has far-reaching consequences,” Jones said. “The NAM has been urging the Biden administration to prioritize streamlining the many complex regulations that slow access to our own natural resources and fixing the broken energy-production permitting system.”

Read more: The NAM’s recently rereleased policy blueprint, “Competing to Win,” outlines legislative actions policymakers can take to keep the U.S. competitive, and these include steps to create a more secure energy future. 

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