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Federal Judge Blocks Biden's Ban on LNG Export Permits, Citing Economic and Security Benefits of American Natural Gas

2024-07-07 09:01:20.468000

A federal judge in Lake Charles, Louisiana, has blocked the Biden administration from continuing to pause the approval of applications to export liquefied natural gas (LNG). The judge sided with 16 Republican-led states, stating that the Department of Energy's freeze on approvals of LNG exports was 'completely without reason or logic.' The Biden administration announced the pause in January to review the process for analyzing economic and environmental impacts of projects seeking approval to export LNG to Europe and Asia. Republican-led states sued in March, arguing that the policy would harm the economy and undermine efforts to supply foreign allies in Europe with steady supplies of LNG. The judge ruled that the pause contravened the Natural Gas Act and was arbitrary, capricious, and unconstitutional.

In response to a lawsuit by 16 Republican-led states, a federal judge in Louisiana has blocked the U.S. government's ban on approving applications to export liquefied natural gas (LNG). The judge ruled that the LNG export ban should be stayed in its entirety, effective immediately. The states argued that the pause on new approvals for LNG exports oversteps the U.S. Department of Energy's authority under the Natural Gas Act. They claimed that the ban would harm the U.S. economy and undermine efforts to supply foreign allies in Europe with steady supplies of LNG. The Biden administration had implemented the pause in order to review the process for analyzing economic and environmental impacts of projects seeking approval to export LNG to Europe and Asia. The move was supported by climate activists but could have delayed decisions on new plants until after the presidential election. The states also argued that the ban jeopardizes planned investments in export facilities.

A federal court has lifted the Biden administration's pause on new permit approvals for LNG exports. Judge James Cain ruled that the DOE failed to justify the need for the pause. Energy Workforce President Tim Tarpley applauded the decision, stating that it is a win for American energy and will bolster American energy production. U.S. LNG exports provide economic advantages by enhancing labor income, driving down import costs, and stimulating economic activity. The exports also stabilize the domestic market and incentivize increased natural gas production, leading to billions of dollars in investments and job creation.

A federal court has reversed the Biden administration's pause on new permits for liquefied natural gas (LNG) exports, supporting global emissions reduction efforts and increasing energy security. The court's decision aligns with the argument that American natural gas is a win for climate, economy, and security. Switching from coal to natural gas has been the primary reason for the U.S.'s emissions reduction. American LNG is cleaner than coal used for energy in Europe and Asia. American LNG exports are also cheaper than the Russian alternative. Innovations in the fossil fuel industry, such as carbon capture and methane abatement, can make American natural gas less emissions-intensive. American LNG has been an economic boon, creating jobs and ensuring national and global energy security. Relying on Russia and Iran for energy puts the U.S. and its allies at risk. The court's decision to halt the ban on new LNG export permits is a step in the right direction for a clean energy future. [fb4a1382] [6bc91013] [bcd51bed] [f0b3c33d]

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