President Joe Biden's decision to shut down new liquefied natural gas (LNG) export terminals has drawn the ire of the industry and Republican opposition, but also the joy of defenders of the environment and the fight against climate change. The White House has frozen permits for new exports of U.S. LNG to countries with which Washington does not have a free trade agreement, effectively putting 17 infrastructure projects on hold. Among them, Calcasieu Pass 2, which was planned to become the largest export terminal in the world in Louisiana, at a cost of 10,000 million dollars (9,190 million euros) and which had already provoked strong criticism from environmental organizations for its possible impact on the environment.
The US Presidency claims that the measure is necessary to allow the Department of Energy to assess and update the market, climate and security impacts of this energy modality: the analyzes it has carried out mostly date back five years, when the industry was still almost in this country was in its infancy.
Today the United States is the world's most important exporter, having overtaken industry giants such as Australia and Qatar last year: in 2023 it exported 88.9 million tons abroad, 14.7% more than the previous year, according to the Data from the USA London Stock Exchange Group. The energy crisis in Europe, caused by the outbreak of war in Ukraine and the cessation of gas supplies from Russia, which increased the demand for this type of gas in the Old Continent by 60%, gave the final impetus to a sector that plans to do so By the end of the current decade, it will double its export capacity once the construction of five major ongoing projects is completed.
But as the sector has become more successful, so too has control over it. Environmental groups say the explosion in exports is inconsistent with meeting U.S. climate commitments. They claim that selling LNG perpetuates the use of fossil fuels rather than encouraging the consumption of renewable energy. And there is a risk of relying on large export investments that may not show continuity over time.
Although natural gas is cleaner than other hydrocarbons, it still emits significant amounts of carbon dioxide when burned, environmental groups point out. The main component of this fuel, methane, traps more heat than CO₂ when released into the atmosphere.
Pressure from these groups and public opinion led more than 60 lawmakers in November to call for changes to the way the Energy Department issues permits.
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Today, “we have advanced our understanding of the need for LNG in the markets, the long-term supply of LNG and the dangerous impact of methane on our planet.” “We must also adequately protect ourselves from health risks to our communities, especially frontline communities Front in the United States, which is suffering disproportionately from the burden of environmental pollution from new export facilities,” emphasizes the White House.
In a statement announcing the new measure last Friday, Biden specified: “In this phase, we will critically examine the impact of LNG exports on energy costs, the energy security of the United States, and our environment.” “Across the country and around the world “People are suffering from the devastating effects of climate change,” he added. “This pause in new LNG approvals recognizes the climate crisis for what it is: the existential threat of our time.”
The moratorium provides an exception for cases of an “immediate and unforeseen national security emergency.” Export projects that are already underway or under construction are not affected by this. But those still waiting to receive approval, 17 in total, will be paralyzed indefinitely, probably until 2025, once the presidential election is over next November. That includes Calcasieu Pass 2, also known by its initials CP2, a controversial project that was rejected by more than 150 scientists in a letter to Biden last December.
The pause announcement comes just a month after COP28, the UN meeting on climate change in Dubai, where the nearly 200 participating countries – including the United States – committed to embarking on a path to phase out fossil fuels finish.
The White House has assured that the moratorium will not jeopardize U.S. LNG shipments to Europe or other allied countries in the near term. “Last year, about half of American LNG exports went to Europe, and the United States has worked with the European Union to successfully reduce consumption and manage its storage to ensure there is no unprovoked aggression.” They can jeopardize their supply,” says the presidential office.
The measure was celebrated by environmental groups that expressed disappointment last year with the White House's decision to allow oil exploration in previously banned areas of Alaska.
“Today’s action by the President is a historic measure to protect our health and economic security; This not only prevents toxic pollution, but also prevents our energy costs from increasing. It is real leadership and a stark contrast to the direction Donald Trump wants to give the country, where the motto is: drill and keep drilling,” said Antonieta Cádiz, deputy executive director of Climate Power in Action.
But the Republican opposition began criticizing the pause in the middle of the campaign. A day after the official announcement, former President and current White House candidate Donald Trump promised during a rally to approve new projects “on my first day back” to the presidency.
Business groups in the United States and allied countries also contend that the measure could be harmful to both the American economy and the global economy at a time of prosperity. Maintaining the moratorium, they argue in an open letter, “would send a worrying signal to allies, investors and energy markets that could reverberate for years to come.”
The Center for Strategic and International Studies (CSIS) think tank warns in an analysis that LNG buyers could “shift their attention from projects now in limbo” to others already underway. “The decision could also help other LNG suppliers like Qatar who want to secure their own commercial supply contracts,” he claims.
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