What the Biden Administration Got Wrong on Its LNG Pause (RealClearEnergy)
Lucian Pugliaresi, Tatsuya Terazawa (July 10): The Biden administration’s pause on new LNG export approvals, intended for environmental reassessment, faces strong criticism for potentially undermining U.S. energy security and international relationships. Despite a recent court order, the DOE can continue delaying LNG export licenses basically indefinitely. This pause could disrupt long-standing energy cooperation with allies and slow down the transition to low-carbon fuels. The United States and Australia have played crucial roles in stabilizing global natural gas prices, particularly post-Russian invasion of Ukraine, through flexible LNG export contracts.
The pause risks creating a significant LNG supply shortage by 2040, with demand projections exceeding supply by up to 18 bcf/d, according to the IEEJ. This uncertainty may lead companies to relocate projects, eroding trust in the United States as a reliable LNG supplier and benefitting competitors like Qatar. Additionally, the pause disproportionately affects non-FTA countries, which represent the largest demand growth for U.S. LNG. The authors argue for a timely resumption of the approval process to mitigate these negative impacts on U.S. national and economic interests, emphasizing the need for stable LNG supply during global geopolitical tensions. Link to Content