Texas, the top US crude oil and natural gas producer, and 15 other Republican-led states on March 21 filed a lawsuit in federal court in Louisiana to challenge the Biden administration’s suspension of approvals for new liquefied natural gas (LNG) export projects.
The lawsuit against President Joe Biden and the US Department of Energy was initiated with the argument that the White House is going against the intent of Congress and decades of US policy.
“The ban would drive billions of dollars in investment out of Texas, hamper our ability to maximize revenue for public schools, force Texas producers to burn excess natural gas instead of bringing it to market, and destroy vital jobs,” Texas Attorney General Ken Paxton said in a statement.
The U.S. Department of Energy did not immediately respond to a request for comment from Bloomberg. LNG is gas that has been cooled to the point where it can be loaded onto liquid tankers and shipped around the world .
The Biden administration announced in late January that it was pausing licensing for new LNG export projects to assess how the sector impacts climate change, the economy and national security.
“Pausing approvals for new LNG projects is about seeing the climate crisis for what it is: the existential threat of our time,” Biden said at the time.
Cheniere Energy Inc.'s Sabine Pass LNG export facility in Louisiana, US. Photo: Power Engineering
The US only began exporting LNG in 2016 but has quickly become the world’s largest supplier, partly because Europe has turned away from Russian pipeline gas since Moscow launched its military campaign in Ukraine more than two years ago.
The White House’s move to suspend the permit strikes at the heart of the debate over the future of energy. While advocates say gas is vital to curbing coal use in developing countries, environmentalists warn that the massive infrastructure needed to facilitate LNG trade will keep it in use for generations to come.
The halt would “disrupt natural gas development and production and leave us with no choice but to go to court to enforce the law,” Louisiana Attorney General Liz Murrill said in a statement after filing the lawsuit.
The moratorium on approvals for new LNG export projects comes as Mr Biden seeks to appeal to young voters passionate about environmental issues in a tough White House rematch.
He would likely face Republican candidate Donald Trump, who has called man-made global warming a “hoax” and has vowed to destroy his Democratic opponent’s climate agenda.
Under Mr Biden’s plan, new LNG export applications would be subject to an unspecified review period, taking into account climate as well as broader economic and environmental impacts.
The suspension would jeopardize the future of more than a dozen planned LNG export facilities.
Scientists and environmental activists welcomed the Biden administration's move, which excludes plants that have been approved but not yet built and makes exceptions for national security emergencies .
Minh Duc (According to Bloomberg, France24)
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