House Passes Bill to Reverse Biden LNG Pause

The House of Representatives passed a bill on Feb. 15 that would reverse President Joe Biden’s pause on U.S. exports of liquefied natural gas (LNG).

The tally was 224–200, with nine Democrats joining all 215 Republicans in favor of the Unlocking our Domestic LNG Potential Act of 2024, which House Republican Conference Chair Elise Stefanik (R-N.Y.) said this week was in response to what she called President Biden’s “war on American energy.”

The bill does not prohibit the United States from exporting LNG to those under U.S. sanctions and to countries that are state sponsors of terrorism. The United States deems Cuba, North Korea, Iran, and Syria as such backers.

The Biden administration announced on Jan. 26 a pause on LNG export permit approvals.

White House officials want to embark upon a months-long evaluation of the environmental and economic effects of the LNG shipments. The decision has already morphed into a hot political issue heading into the 2024 election campaign, with President Trump promising to approve new projects on his “very first day back” and the industry warning of the method’s consequences.

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Since the announcement, there has been a divergence in the reaction from energy industry leaders and climate organizations.

Energy sector leaders say the White House’s suspension of new LNG project permits benefits America’s enemies and harms U.S. jobs, the nation’s allies, and international climate progress.

“There is no review needed to understand the clear benefits of U.S. LNG for stabilizing global energy markets, supporting thousands of American jobs, and reducing emissions around the world by transitioning countries toward cleaner fuels,” Mike Sommers, CEO of the American Petroleum Institute (API), said in a Jan. 26 statement.

“This is nothing more than a broken promise to U.S. allies, and it’s time for the administration to stop playing politics with global energy security,” he said.

In the fallout of Russia’s invasion of Ukraine, Europe turned to the United States for assistance in a quest to eliminate its dependence on Moscow. In 2022, the United States exported about 800 LNG cargo shipments to Europe, a 141 percent increase from the previous year.

So far, Europe has been able to avert winter shortages for two years in a row thanks to a combination of immense imports and mild temperatures. However, the continent could still grapple with a looming natural gas supply shortage in the coming decades, according to a recent Rystad Energy analysis.

So far, Europe has been able to avert winter shortages for two years in a row thanks to a combination of immense imports and mild temperatures. However, the continent could still grapple with a looming natural gas supply shortage in the coming decades, according to a recent Rystad Energy analysis.

But while experts warn that the recent climate change measure could force the United States to fall short of its promise to ship about 5 billion cubic feet per day until 2030, others contend that restricting LNG exports could support American households.

Tyson Slocum, the director of Public Citizen’s energy program, argues that the administration’s action doesn’t affect current supplies and could be a victory for families nationwide.

“It is not in the public interest to hand Big Oil windfall profits while American families struggle to pay their energy bills,” said Mr. Slocum. “President Biden’s actions today mark a first step toward ensuring American households are protected by higher energy burdens caused by record exports.”

The Sierra Club celebrated the announcement as climate and environmental justice activists called it a “huge win.”
“At a moment where there have been record exports, it is driving up our energy costs here at home in addition to polluting communities and making the climate crisis worse,” Cathy Collentine, associate director of the Sierra Club’s Beyond Dirty Fuels campaign, said in a statement.

Industry advocates assert that natural gas is a bridge fuel to clean energy because it can support national and worldwide efforts to reduce emissions until solar and wind account for a more significant share of the power grid. Center for Climate and Energy Solutions data show that natural gas emits 30 percent less than crude oil and fewer pollutants on a per-unit basis.

Today, in the United States, 40 percent of electricity generation is derived from natural gas. By comparison, solar and wind represent 10.3 percent and 3.4 percent of the power grid, respectively.