By Anders Lorenzen

An announcement by US President Joe Biden to pause the approvals for pending and future applications to export liquefied natural gas (LNG) from new projects has been warmly welcomed by climate activists and could delay decisions on new plants until after the US Elections taking place on the 5th of November 2024.

During that pause, the Department of Energy (DOE) is to conduct a review looking at the economic as well as environmental impacts of projects seeking approval to export LNG to Europe and Asia.

In a statement, President Biden said statement: “During this period, we will take a hard look at the impacts of LNG exports on energy costs, America’s energy security, and our environment. The pause sees the climate crisis for what it is: the existential threat of our time,” The US President who is running for a second term said.

LNG demand

Companies and countries in Europe rely on steady supplies of LNG from the US, which became the world’s top LNG exporter last year, as the region tries to wean itself off pipelined gas from Russia after its 2022 invasion of Ukraine. US allies in Asia also covet LNG as they seek to slow coal consumption.

Since the last review of LNG export projects was conducted in 2018 when export capacity was 4 billion cubic feet per day (bcfd), capacity has tripled and is set to shoot higher by 2030 with new projects under construction. This has set off protests from climate activists and environmentalists who argue new LNG projects can harm local communities with pollution, lock in global reliance on fossil fuels for decades, and lead to emissions from burning gas and from leaks of the powerful greenhouse gas methane.

Roishetta Ozane, founder and director of The Vessel Project of Louisiana and a leading voice in the opposition to the LNG build-out said “This is a milestone,” and further explained that her family’s health is affected by these terminals. “It sets the stage for potential rejections and slows down the progress of these projects,” she added.

A large part of the US’s industry, ranging from chemicals, steel, food and agriculture, also opposes unrestricted exports of US gas, saying it raises risks for fuel prices and reliability.

However, just four projects with export approvals pending at the DOE would be affected by the pause.

Climate activists in the US have made stopping Venture Global’s Calcasieu Pass 2 (CP2) pending LNG project in Louisiana, which would be the nation’s largest, a top priority.