Biden Administration Pauses Natural Gas Exports
On January 26, the White House announced that the Biden administration has temporarily suspended exports of liquefied natural gas (LNG) to countries with which the United States does not have free trade agreements. The suspension, which includes an exception in the case of “unanticipated and immediate national security emergencies,” will last until the U.S. Department of Energy (DOE) can update its underlying analyses for LNG export authorizations.
In a statement, President Joe Biden explained, “During this period, we will take a hard look at the impacts of LNG exports on energy costs, America’s energy security, and our environment. “ The president also said, “This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.”
The United States began exporting LNG in 2016 and is now the world’s largest exporter, which is why this decision could impact U.S. energy and national security. As Politico said, for example, “Soaring exports of liquefied natural gas from terminals along the Gulf Coast have given the United States powerful leverage against Russian suppliers in Europe and Asia.” Indeed, the United States provided more than half of Europe’s LNG imports in 2022 and two-thirds in 2023.
Opponents of the suspension also have argued this decision will make U.S. allies more vulnerable to attack. The chief executive of the Asian Natural Gas and Energy Association argued, “[W]ithout sufficient access to gas imports, energy security and the energy transition will be elusive for the people of Southeast Asia, and that in turn places at risk the ambitious decarbonization plans spearheaded by Japan.”
Finally, according to the U.S. Chamber of Commerce, this decision will slow the United States’ transition to cleaner forms of energy like natural gas. (U.S. LNG has a lower emissions footprint than coal or Russian natural gas, for example. Limiting exports would reduce natural gas’ role as a backup to renewable energy.) The U.S. Department of Energy has more information about the pause on exports at this link.