Janice R. Andrews
January 26, 2024 – Washington, D.C.
Citing worries about the proposed LNG export terminal projects’ possible effects on climate change, the White House has taken a bold step by announcing the suspension of the regulatory process. The Department of Energy (DOE) and environmentalists have worked together to reach this historic decision in response to mounting calls for a review of projects that increase carbon emissions.
The joint release on Friday disclosed that the suspension would last for the duration of a comprehensive environmental study of the projects by federal regulators, which is anticipated to take more than a year. When evaluating export applications, Energy Secretary Jennifer Granholm stressed the importance of conducting a thorough examination of economic, environmental, and national security factors.
“We have stuck behind our partners and allies from the beginning. According to White House climate czar Ali Zaidi, that is how Joe Biden leads on climate change. The administration’s goal of moving away from fossil fuels is in line with international initiatives to tackle climate change.
While details about which individual projects are impacted by the suspension are yet unknown, a senior administration official disclosed that two of them have lesser capacities and at least two have bigger capacities. The projects that have passed the Federal Energy Regulatory Commission’s (FERC) regulatory procedure and are awaiting DOE approval are the only ones affected by the halt.
Based on federal data now available, there are 11 projects that have been approved by FERC but are not yet under construction, four that are pending before FERC, and two that are in the pre-filing phase. The final six projects would only be impacted if FERC gave its approval.
Democrats and environmentalists, who contend that LNG export facilities add to hazardous pollution and worsen global warming, have recently opposed this action. Social media activists have gained traction, drawing a lot of attention to and support for their opposition to LNG construction.
LNG export facilities‘ proponents contend that, particularly in light of initiatives to lessen reliance on Russian natural gas, they are essential to supplying Asia’s and Europe’s energy needs. The decision was criticised by former FERC Chair Neil Chatterjee, who emphasised that US LNG exports are cleaner than Russian LNG exports and help reduce global carbon emissions.
International energy associations that have indicated strong support for allowing U.S. LNG export terminals to continue operating include Eurogas and the Asia Natural Gas & Energy Association. The significance of U.S. LNG for Germany’s energy security was underlined by the state-owned energy business Securing Energy for Europe in Germany.
Bill McKibben and other climate activists, along with environmental organisations, have applauded the White House’s decision. The Biden administration, despite opposition from business titans and advocates of more LNG exports, continues to lead this historic step in the direction of a clean energy future and global climate progress.
As the globe struggles with the pressing need to move away from fossil fuels, the suspension of LNG projects raises concerns about how to strike a balance between economic interests, energy security, and environmental sustainability.
