The review freezes development of CP2, a mammoth export project Venture Global LNG envisioned for coastal Louisiana. Environmental groups have called on the Biden administration to cancel the project, which they say would block fossil fuel shipments for years and worsen climate change.
The United States is the world’s largest producer of natural gas and its exports of the fuel have soared since the new wave of export terminals came online eight years ago. Now the main supplier of LNG, US shipments have helped Europe reduce its dependence on Russian supplies following Moscow’s invasion of Ukraine.
The administration believes “we need to catch our breath,” one of those present said. “We are already the world’s largest exporter and we are going to double that figure. Let’s clear the decks a little.
The decision to delay approval of any new LNG export permits until after the November election could appease environmental groups who have made U.S. natural gas exports a new litmus test for Biden ahead of his re-election campaign. And despite strong pressure from the oil and gas industry against any revision, White House officials were confident that the moratorium on new export permits would not stifle shipments of U.S. natural gas to the global market that is currently well stocked, and given that there are several of the projects already holding permits and already under construction, the two people said.
The review will not disrupt the eight LNG export plants currently operating, the sources said. These plants ship 12 billion cubic feet of gas per day, or about 10 percent of the nation’s total gas production, according to the U.S. Energy Information Administration. The review also would not hinder the 10 projects that already hold DOE export permits and are currently under construction. These new projects, once built, would double the amount of U.S. LNG brought to market by 2028, according to EIA data.
Instead, the review would suspend any new permits for 10 additional projects that have applied for DOE permits but not received them and whose funders have not made a final investment decision, even if we have to build the projects.
Energy Secretary Jennifer Granholm, White House Clean Energy Advisor John Podesta, Climate Advisor Ali Zaidi, and White House Energy Security Advisor Amos Hochstein contributed to developing the study’s language , the sources said. The review will aim to update how DOE evaluates climate change, environmental justice, and domestic economic impacts when reviewing new LNG export applications to countries with which the United States does not do not have a free trade agreement.
A Venture Global spokesperson blasted the idea that the administration could impose a moratorium on new permits.
“Such action would shock the global energy market, have the impact of an economic sanction, and send a devastating signal to our allies that they can no longer rely on the United States,” he said. VG spokesperson Shaylyn Hynes in a statement.
A White House spokesperson declined to comment.