In 2023, the United States made history by becoming the world’s largest exporter of liquified natural gas (LNG), with projections indicating that it could potentially double its exports by the close of this decade. However, this rapid expansion has recently been put on a temporary pause by the Biden administration.
The decision to halt the approval of pending LNG export permits was made to allow for a comprehensive review of their economic and environmental impacts. This move has implications for around a dozen planned gas export terminals across the country. The decision has been lauded by various environmental and advocacy groups who have raised concerns about the potential adverse effects of these terminals.
One such concern is the possible impact on the health of residents living near fossil fuel and petrochemical plants. A report by Human Rights Watch has brought to light serious health issues among inhabitants residing near such establishments in Louisiana.
However, this decision to pause new gas export approvals is not without its potential pitfalls. It could face legal challenges, especially if energy officials significantly impede specific projects. According to the Natural Gas Act, the energy secretary is required to approve export applications unless they conflict with the public interest, a term that can encompass environmental impacts and climate change considerations.
The Biden administration’s move to halt the increase in gas exports leads to a pause on numerous planned projects. Environmentalists have criticized these projects as major contributors to climate change.
It’s important to note, however, that the pause on permits is not absolute. Exceptions are made for “unanticipated and immediate national security emergencies.” Therefore, while the pause is in place for now, it does not completely rule out the possibility of future growth in the LNG export sector. It remains to be seen how this will play out in the coming years, and what the overall impact will be on both the economy and the environment.
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