White House is set to announce a review of natural gas export terminals

The announcement from the White House is anticipated on Friday, though the timing may extend to early next week based on last-minute planning considerations. According to sources familiar with the matter, the Biden administration’s evaluation of new natural gas export terminals is projected to span up to 15 months. This decision could potentially slow down the rapidly expanding industry and clash with certain foreign policy goals of the president.

The ongoing review, which scrutinizes the Energy Department’s process for determining the public interest in new liquefied natural gas (LNG) projects, will delve into the industry’s impact on climate change and the environmental consequences for the communities housing the LNG plants. The anticipated announcement from the White House, originally scheduled for Friday, may be delayed to early next week, as indicated by anonymous sources privy to the unreleased policies.

This review has halted the progress of CP2, a sizable export initiative by Venture Global LNG intended for coastal Louisiana. Environmental advocates have urged the Biden administration to reject the project, contending that it would perpetuate fossil fuel shipments, exacerbating climate change.

The United States, as the world’s leading natural gas producer, has witnessed a surge in LNG exports over the past eight years. The administration believes it is necessary to pause and evaluate the situation, considering the country’s already dominant position in the global LNG market. This decision, aimed at easing concerns raised by environmental groups, is expected to push new LNG export permits beyond the November election.

While the oil and gas industry has lobbied against the review, White House officials remain confident that the moratorium on new export permits will not hinder existing U.S. natural gas shipments, given the current global market saturation. The review will not disrupt the operation of the eight existing LNG export plants or impede the progress of the 10 projects already under construction with DOE export permits.

The review, spearheaded by Energy Secretary Jennifer Granholm, White House clean energy advisor John Podesta, climate advisor Ali Zaidi, and White House energy security advisor Amos Hochstein, seeks to update the criteria considered by the DOE for new LNG export applications. It will specifically address factors such as climate change, environmental justice, and domestic economic impacts when assessing applications for LNG export to countries without free trade agreements with the United States.

Venture Global criticized the potential moratorium, asserting that it would disrupt the global energy market and send a detrimental signal to U.S. allies. A spokesperson for the White House declined to comment on the matter.