LNG Industry Warns Biden Administration Against Halting Export Permits

Industry groups warned the Biden administration this week against new measures to curb liquefied natural gas export approvals, saying any decision to halt LNG exports “would be a major mistake.”

In a Jan. 24 letter to the Energy Department, the American Petroleum Institute, the American Exploration and Production Council and more than 30 other groups representing the oil industry said they are concerned the administration may soon begin rejecting permits for U.S. LNG export facilities, which “would only bolster Russian influence and undercut President Biden’s own commitment to supply our allies with reliable energy.” The letter comes after multiple reports said Biden is planning to delay certain LNG exports due to climate concerns.

The trade groups said continued U.S. exports of LNG will help keep gas prices low. They also said a delay in permits would “undermine” efforts to reduce greenhouse gas emissions by encouraging the U.S. and other nations to increase coal consumption.

The Biden administration has “already extended a process that took seven weeks during the last administration to an 11-month process on average,” the groups said, adding that the Energy Department should reject calls to “prolong the review period or create new hurdles as it considers approvals for new LNG projects and terminals.”

The White House and the Energy Department didn’t respond to requests for comment.