When the Biden administration paused the approval of new liquefied natural gas exports in January, it was seen as a significant moment for environmentalists and left-leaning politicians. The Department of Energy (DOE) announced it would reevaluate how it reviews large export projects that condense fracked gas into liquefied natural gas (LNG) for shipment abroad. This decision came after discussions between the White House and climate activists, shifting the industry’s trajectory which had strong support from previous administrations.
However, this pause only affected a few projects in the planning stages, not those already approved or under construction. Despite opposition from oil and gas executives and Republicans, a federal judge appointed by former President Trump overturned the policy. The ruling stated that the Biden administration still needs to evaluate individual projects, undermining the impact of the temporary pause.
Although there were questions around how LNG exports were influencing the energy mix, the pause did not prevent the Federal Energy Regulatory Commission (FERC) from approving projects like Venture Global’s Calcasieu Pass 2 terminal. Additionally, the legal challenges and political implications of the pause added complexity to the situation.
Environmental and climate advocates called for the administration to continue its review of LNG exports. The legal battles and political influence on this issue could have repercussions on Biden’s reelection chances and relationships with the oil and gas industry. The long-term regulatory review of LNG exports will depend on the outcome of the upcoming election and the administration’s ability to navigate legal challenges.
