USA
Follow-up: 16 Republican states sue Biden administration over planned LNG export pause / Regulatory process claimed circumvented
Led by Louisiana and Texas, 16 US states – all with Republican governors and several with a fossil-fuel based economy – are challenging in court the temporary freeze on approving new permits for liquefied natural gas (LNG) export terminals implemented by the administration of US President Joe Biden.
Louisiana and Texas are leading the 16-state lawsuit brought against the Biden Administration (Photo: Pexels/Travis Saylor) |
The 60-page lawsuit was filed jointly in the US District Court for the Western District of Louisiana, with Alabama, Alaska, Arkansas, Florida, Georgia, Kansas, Mississippi, Montana, Nebraska, Oklahoma, South Carolina, Utah, West Virginia, and Wyoming as additional plaintiffs.
Biden said the pause is necessary in order for the Department of Energy (DOE) to study the impact that the export of abundant fracking-derived US gas – the country now being the leading exporter – is having on climate control discussions in other countries. The state governors, meanwhile, are leveraging the Natural Gas Act of 1938 to support their stance that the move was illegal.
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The lawsuit claims that the administration circumvented the regulatory process that should have encompassed a hearing with public and industry participation. What’s more, they maintain that the president’s decision violates a 2022 Supreme Court opinion that federal agencies must consult Congress before regulating any “major questions”.
Louisiana sees jobs at stake as industry fears uncertainty for investors
In a separate statement, Louisiana said the proposed freeze represents an “attack” on US energy that jeopardises thousands of jobs and millions of dollars in tax revenue.
The US-based LNG industry has also criticised the temporary halt on new projects, saying it creates uncertainty among investors. Some LNG-importing countries, such as Japan, have stakes in US gas projects and are seeking clarity on where these stand amid the implementation process.
The DOE has said its process for studying the need for new LNG export terminals is “transparent” and uses the most up-to-date economic and environmental analyses to determine what is in the public interest.
The US-based LNG industry has also criticised the temporary halt on new projects, saying it creates uncertainty among investors. Some LNG-importing countries, such as Japan, have stakes in US gas projects and are seeking clarity on where these stand amid the implementation process.
The DOE has said its process for studying the need for new LNG export terminals is “transparent” and uses the most up-to-date economic and environmental analyses to determine what is in the public interest.
11.04.2024 Plasteurope.com [254959-0]
Published on 11.04.2024