Sixteen Republican-Led States Challenge Federal Government’s Ban on LNG Permits
Legal Battle Against LNG Export Ban
Sixteen Republican-led states have taken legal action to contest the federal government’s ban on approving applications for liquefied natural gas (LNG) exports. They argue that the government lacks the authority to broadly deny these permits, impacting the U.S. economy and efforts to supply foreign allies with LNG.
Concerns Raised by States
The lawsuit, filed in federal court in Louisiana, claims that the U.S. Department of Energy’s pause on LNG exports will harm the economy and hinder the supply of LNG to Europe. This move comes as Europe seeks alternatives to Russian piped gas.
Biden Administration’s Justification
In response, the Biden administration cited the need to review the economic and environmental impacts of LNG export projects to Europe and Asia. The pause aims to ensure that these projects align with the public interest before granting approvals.
States’ Argument Against Ban
The states assert that the ban exceeds the DOE’s authority under the Natural Gas Act, which requires a thorough evaluation of projects’ public interest implications before denying applications. They also highlight the potential negative impact on planned investments in export facilities.
Environmental Concerns and Industry Opposition
Environmentalists and domestic industries have raised concerns about the environmental impact and reliability of U.S. domestic supply due to unrestricted LNG exports. While environmentalists fear pollution, industries like chemical, steel, and agriculture worry about supply stability and fuel prices.
Congressional Stalemate
Efforts by Republicans in Congress to shift approval authority for LNG projects from the DOE to the Federal Energy Regulatory Commission have stalled. This legal battle underscores the ongoing debate surrounding LNG exports and their implications on various sectors.
