President Joe Biden's decision to paralyze new terminals for the export of liquefied natural gas (LNG) has caused the anger of the sector and the Republican opposition, but also the joy of defenders of the environment and the fight against climate change . The White House has frozen permits for new exports of US LNG to countries with which Washington does not have a free trade agreement, which in practice leaves 17 infrastructure projects on hold. Among them, Calcasieu Pass 2, which was going to be the largest export terminal in the world, in Louisiana, with a cost of 10,000 million dollars (9,190 million euros) and which had already generated strong criticism from environmental organizations about its possible environmental impact.
The US presidency alleges that the measure is necessary so that the Department of Energy can evaluate and update the effects on the market, the climate and the security of this energy modality: the analyzes it handles are, for the most part, from five years, when the industry was still almost in its infancy in this country.
Today, the United States is the main exporter in the world, after surpassing giants in the sector such as Australia or Qatar last year: in 2023 it sent 88.9 million metric tons abroad, 14.7% more than the previous year, according to data from the London Stock Exchange Group. The energy crisis in Europe caused by the outbreak of war in Ukraine and the suspension of gas supplies from Russia, which increased the demand for this type of gas by 60% in the Old Continent, gave it the definitive boost to a sector that plans to double its export capacity before the end of the current decade, once the construction of five large ongoing projects is completed.
But with the success of the sector, scrutiny on it has increased. Environmental organizations consider that the explosion in exports is incompatible with compliance with US climate commitments. They allege that LNG sales perpetuate the use of fossil fuels, rather than encouraging the consumption of renewable energy. And there is the risk of betting on heavy investments for exports that may not have continuity over time.
Although natural gas is cleaner than other hydrocarbons, it still emits significant amounts of carbon dioxide when it burns, environmental organizations point out. The main component of this fuel, methane, traps more heat than CO₂ when it is released into the atmosphere.
Pressure from these groups, and from public opinion, led more than 60 parliamentarians in November to demand changes to the way the Department of Energy grants permits.
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Today “we have evolved our understanding of the need for LNG in the markets, the long-term supply of LNG and the dangerous impact of methane on our planet. “We must also adequately protect ourselves from health risks to our communities, especially frontline communities in the United States that bear disproportionately the burden of pollution from new export facilities,” the White House maintains.
In a statement announcing the new measure last Friday, Biden specified that “during this stage we will critically examine the effects of LNG exports on energy costs, the energy security of the United States and our environment.” “In every corner of the country and the world, people are suffering the devastating effects of climate change,” he added. “This pause in new LNG approvals takes the climate crisis for what it is: the existential threat of our era.”
The moratorium includes an exception for cases of “immediate and unforeseen national security emergency.” It will also not affect export projects already underway or those that are under construction. But those who were pending to receive permits, a total of 17, will be paralyzed indefinitely, probably until 2025, once the presidential elections next November have passed. Among them, Calcasieu Pass 2, also known by its initials CP2, a controversial project rejected by more than 150 scientists in a letter addressed to Biden last December.
The announcement of the pause comes just a month after COP28, the UN meeting on climate change held in Dubai, in which the nearly 200 participating countries – including the United States – committed to embarking on the path to ending definitively leaving fossil fuels behind.
The White House has assured that the moratorium will not jeopardize US LNG supplies to Europe or other allied countries in the short term. “Last year, about half of American LNG exports went to Europe, and the United States has worked with the European Union to successfully economize consumption and manage its storage, ensuring that unprovoked acts of aggression do not occur.” They can threaten its supply,” says the presidential office.
The measure has been celebrated by environmental organizations, which had expressed their disappointment last year over the White House's decision to allow oil prospecting in areas of Alaska that were hitherto banned.
“The president's action today is a historic measure to protect our health and economic security; Not only will it prevent toxic pollution, but it will also prevent increasing our energy costs. It is real leadership and a marked contrast with the direction that Donald Trump wants to take the country, where the motto is drill and keep drilling,” said Antonieta Cádiz, deputy executive director of Climate Power in Action.
But the Republican opposition, in the middle of the electoral campaign, has launched into criticizing the pause. One day after the official announcement, the former president and current candidate for the White House, Donald Trump, promised during a rally to approve new projects “on my first day back” to the presidency.
Business groups in the United States and allied countries also allege that the measure could be detrimental to the American economy, at a time of prosperity, and that of the entire world. Maintaining the moratorium, they argue in an open letter, “would send a worrying signal to allies, investors and energy markets that could continue to reverberate for many years.”
He think tank Center for Strategic and International Studies (CSIS) warns in an analysis that LNG buyers may “turn their attention from projects that are now in limbo” to others already underway. “The decision could also help other LNG suppliers, such as Qatar, who want to close their own commercial supply contracts,” he maintains.
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