Biden plans to revise climate-related criteria for approving LNG export terminals to win support of climate-minded voters

01/16/2024 / By Laura Harris

High-ranking officials from the administration of President Joe Biden recently met to discuss the potential revision of climate-related criteria used in approving new liquefied natural gas (LNG) export terminals.

In 2023, the United States was the world’s largest exporter of LNG. The country currently has five new LNG export facilities under construction, including Calcasieu Pass 2 in Louisiana, with several others permitted and awaiting final investment decisions. The plants, which convert natural gas into liquid form for easier transportation, have been a significant part of the U.S. energy landscape since 2016.

A panel of government officials, convened by White House climate adviser Ali Zaidi and including Department of Energy (DOE) Secretary Jennifer Granholm, evaluated the climate, geopolitical and domestic economic implications of the proposed projects. The focal point of the discussion was the potential revision of climate-related criteria used in approving new LNG export terminals.

According to several reports, the administration faces the dilemma of fulfilling commitments to provide more gas to Europe even after the beginning of Russia’s special military operation in Ukraine, and addressing the concerns of Biden’s more climate-minded voters who are crucial to his reelection bid. This reassessment coincides with heightened scrutiny of every fossil fuel project currently under approval by Biden’s administration, given the growing emphasis on climate issues in electoral discourse. (Related: Hoarding: China securing more deals to import massive amounts of LNG.)

These deliberations follow the recent United Nations COP28 climate summit in Dubai, where the U.S. and nearly 200 other nations agreed to an eventual transition away from fossil fuels. The DOE, responsible for issuing export permits, is reportedly reviewing its processes to ensure the proper accounting of the climate impact of proposed LNG plants.

Biden, who has been briefed on the LNG export facilities, has not yet made a final decision, but the outcome of these discussions could carry substantial implications for both domestic energy policy and international relations.

U.S. LNG export policy sparks clashes between politicians and environmentalists

This high-stakes meeting transpires amid clashes between politicians and environmental groups.

Republican Sen. Bill Cassidy of Louisiana, who is vehemently opposed to any attempt to curtail U.S. LNG exports due to the crucial role they play in his home state’s economy, dubbed proposals for more stringent climate rules “shortsighted.” He argued that restricting natural gas exports would hinder the shift from coal-fired power to the cleaner-burning alternative of natural gas.

“If we limit the export of natural gas, we limit the ability to substitute cleaner-burning natural gas for coal,” Cassidy said at an American Petroleum Institute (API) event in Washington. He further argued that the construction of new multi-billion-dollar LNG export terminals and associated infrastructure could entrench decades of additional natural gas usage, discouraging the pursuit of emission-free alternatives.

However, API Chief Executive Mike Sommers worries about the implications of these delays on the nation’s standing as a reliable LNG partner.

“The signal that sends to our allies is very, very concerning: Is the United States going to be a source of LNG and a reliable partner into the future? Our allies are going to start asking that question if they make this determination,” he said in an interview.

Some Democrats and environmental groups also urge Biden to reject any further export licenses due to climate concerns.

For instance, Third Act, a climate activism group, has announced plans for a sit-in protest at the DOE headquarters in Washington, D.C. The protest seeks to sway the decision-making process at DOE, underscoring the urgency of climate action and urging a halt to the expansion of fossil fuel infrastructure.

Environmental activist Bill McKibben, known for his past efforts against the Keystone XL oil pipeline, has now turned his attention to LNG exports. Alongside fellow climate activists, McKibben is organizing a three-day demonstration at the Department of Energy in February. The sit-in’s website includes a sign-up form, gauging participants’ willingness to risk arrest in support of their campaign against expanded LNG exports.

“So far, the DOE has refused to listen to thousands of letters and ignored petitions signed by hundreds of thousands of people. So we need to go to DC to drive home how serious this crisis is,” McKibben wrote in a letter specifically addressed to CP2, a proposed plant from Venture Global LNG Inc. in Louisiana

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