Biden hits pause on approvals of liquified natural gas exports

WASHINGTON — The Biden administration is pausing approvals of pending applications for liquefied natural gas exports to countries with which the United States does not have free trade agreements, citing environmental concerns related to climate change as a key reason for the move.

While the temporary halt is in effect, the Energy Department is expected to evaluate and update the guidance used to make authorizations. The White House said in a fact sheet Friday that the economic and environmental analyses that the department currently uses are about five years old.

They “no longer adequately account for considerations like potential energy cost increases for American consumers and manufacturers beyond current authorizations or the latest assessment of the impact of greenhouse gas emissions,” the White House said.

The pause allows for exceptions to be made for unanticipated and immediate national security emergencies.

President Joe Biden said in a statement that his administration will take a “hard look at the impacts of LNG exports on energy costs” during this period as well as “America’s energy security, and our environment.”

“This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time,” he said. “While MAGA Republicans willfully deny the urgency of the climate crisis, condemning the American people to a dangerous future, my Administration will not be complacent. We will not cede to special interests.”

According to the White House, the U.S. is the top exporter of LNG worldwide, with roughly half of the exports last year going to Europe. Speaking to reporters Thursday, Energy Secretary Jennifer Granholm said the pause “will not affect already authorized exports, nor will it impact our ability to supply our allies in Europe, Asia, or other recipients of already authorized exports.”

“We remain committed to ensuring our partners’ medium-term energy needs are met,” she added. “And if needed, the department can determine if exceptions should be made for national security needs.”

Liquified natural gas is a natural gas that has been cooled to a liquid state to allow for shipping and storage, according to the Energy Department. Any companies that want to export natural gas are required to obtain authorization from the department’s Office of Fossil Energy and Carbon Management.