In a seismic shift impacting global energy dynamics, the Biden administration announced on Friday a bold move to pause approvals for liquefied natural gas (LNG) exports to nations lacking free-trade agreements with the United States. This decision, coupled with plans to overhaul export policies, signals a paradigmatic shift towards a more conscientious approach regarding LNG’s profound ramifications on climate change and energy markets.
Biden Admin Pauses LNG Reviews: A Necessary Pause
The U.S. Department of Energy, entrusted with sanctioning LNG exports to non-Free Trade Agreement (FTA) countries, will temporarily halt the processing of applications. This hiatus is intended for the reassessment of economic and environmental analyses crucial for determining the public interest viability of proposed exports.
President Biden, in a resolute statement, underscored the imperative for a comprehensive review, citing the escalating existential threat posed by climate change. “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,” stated Biden, emphasizing the critical nature of the pause.
Unprecedented Scrutiny: Addressing the Climate Crisis
The current scrutiny gap, as highlighted by the White House, fails to adequately address pivotal factors such as updated greenhouse gas emissions assessments and domestic energy expenses. With 18 pending applications for LNG exports as of December, the imperative for a recalibration of policy becomes glaringly evident.
