HomeFutures and CommoditiesUS lawmakers to vote on legislation to undo Biden's halt on LNG...

US lawmakers to vote on legislation to undo Biden’s halt on LNG projects.

US House to Vote on Bill to Reverse Biden’s LNG Pause

Bill Aims to Limit Biden Administration’s Power to Freeze LNG Exports

The U.S. House is set to vote on a bill that seeks to curb President Joe Biden’s authority to halt approvals of liquefied natural gas (LNG) exports. The measure, sponsored by Representative August Pfluger of gas-producing Texas, aims to designate the independent Federal Energy Regulatory Commission as the sole entity responsible for greenlighting LNG projects. If passed by the Republican-controlled House, the bill would face an uncertain future in the Democratic-controlled Senate.

Impact of Biden’s Pause on LNG Approvals

President Biden’s decision to freeze LNG export approvals has sparked a contentious debate. While some argue that the move is necessary to assess the environmental and economic implications of the surging LNG industry, others, particularly Republicans, have criticized the pause, citing potential job losses and concerns about energy security for U.S. allies.

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Global Implications of the LNG Pause

The repercussions of Biden’s pause extend beyond U.S. borders. In Europe, where countries are seeking to reduce reliance on Russian gas following the invasion of Ukraine, the pause has raised concerns about energy security. However, European Commission Executive Vice President Maros Sefcovic has reassured that the pause will not affect U.S. supplies to Europe in the near term.

Outlook for the LNG Industry

The United States emerged as the leading LNG exporter in 2021, with projections indicating a doubling of exports by the end of the decade. The ongoing discussions and legislative actions surrounding LNG exports are poised to shape the future of this critical sector, with potential implications for global energy dynamics.

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