LAKE CHARLES, La. (AP) — The Biden administration can’t delay consideration of projects aimed at exporting liquefied natural gas while a legal challenge by 16 Republican-led states plays out in federal court, a Louisiana judge said Monday.
U.S. District Judge James Cain, Jr. sided with the states, granting a preliminary injunction that puts the Biden administration’s delay on hold.
It was unlikely, however, that any of the projects would be on a fast track for consideration as the U.S. Department of Energy said late Monday that it disagreed with the court’s ruling and was evaluating its next steps. The White House also voiced disappointment.
“We remain committed to informing our decisions with the best available economic and environmental analysis, underpinned by sound science,” White House spokesperson Angelo Fernández Hernández said in an email to The Associated Press.
President Joe Biden in January decided his administration would delay consideration of new natural gas export terminals in the United States, even as gas shipments to Europe and Asia soared following Russia’s invasion of Ukraine. The move aligned the Democrat with environmentalists who fear an increase in exports — in the form of liquefied natural gas, or LNG — is locking in potentially catastrophic planet-warming emissions.
A coalition of states including Louisiana, Alaska, Texas, West Virginia and Wyoming sued in March, claiming that the administration was violating the U.S. Constitution and other federal laws by banning exportation of LNG to countries without a free trade agreement.
In temporarily blocking the Biden ban on new approvals, Cain said the states will likely succeed in their case. He cited evidence submitted by the plaintiffs that showed loss of revenues and deferred investments in LNG projects due to the Biden administration’s actions.
The ruling comes just days after a federal commission approved what would be the nation’s largest export terminal for liquefied natural gas. Venture Global’s Calcasieu Pass 2 southwestern Louisiana project, often referred to as CP2, was approved last week with little discussion by the Federal Energy Regulatory Commission.
That project still needs DOE approval. The agency has said the project’s application was pending.
Republican members of Congress from Louisiana to Alaska have derided the administration’s pause as shortsighted and a boon to foreign adversaries that produce energy, including Iran and Russia. Other supporters have argued that projects such as CP2 will be critical to global energy security.
The environmental group Evergreen Action was among those to criticize Cain’s ruling, alleging that the judge was “bending the law to hand the oil industry a win.”
“Pause or no pause, the science is clear: No sound analysis that accounts for the climate and environmental hard inflicted by LNG exports could possibly determine that these deadly facilities are in the public interest,” Craig Segall, the group’s vice president, said.
According to the DOE, current authorizations for exports of LNG to non-free trade agreement countries stand at over 48 billion cubic feet per day, or more than 45% of our current domestic production of natural gas. The agency also said the U.S. will continue to be the largest exporter of LNG by a substantial margin for at least the next six years based on the current export capacity.
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LAKE CHARLES, La. — A Louisiana judge has ruled that the Biden administration cannot postpone the consideration of projects focused on exporting liquefied natural gas while a legal dispute by 16 Republican-led states is ongoing in federal court. U.S. District Judge James Cain, Jr. granted a preliminary injunction in favor of the states, putting a halt to the administration’s delay.
The U.S. Department of Energy expressed disagreement with the ruling and is assessing its next actions. The White House also expressed disappointment, emphasizing their commitment to making decisions using the best economic and environmental analysis supported by sound science.
President Joe Biden had decided to delay the assessment of new natural gas export terminals in the U.S. in January. This move, amid increased gas shipments to Europe and Asia following Russia’s invasion of Ukraine, was in line with concerns from environmentalists who fear a rise in liquefied natural gas exports could lead to significant planet-warming emissions.
A coalition of states, including Louisiana, Alaska, Texas, West Virginia, and Wyoming, filed a lawsuit in March asserting that the administration’s ban on LNG exports to countries without a free trade agreement violated the U.S. Constitution and federal laws.
In a temporary block of the Biden administration’s moratorium on new approvals, Judge Cain mentioned that the states are likely to prevail in their case, pointing to evidence presented by the plaintiffs showing revenue losses and deferred investments in LNG projects due to the administration’s actions.
The verdict comes shortly after the Federal Energy Regulatory Commission approved the proposed Calcasieu Pass 2 project in southwestern Louisiana. Although the project gained approval from the commission, it still awaits DOE approval, with the agency confirming that the application is under review.
Several Republican lawmakers from different states have criticized the administration’s pause, considering it short-sighted and beneficial to foreign adversaries like Iran and Russia who are major energy producers. Supporters of projects like Calcasieu Pass 2 argue that they are crucial for global energy security.
However, environmental groups such as Evergreen Action have condemned Judge Cain’s ruling, accusing him of favoring the oil industry. The group’s vice president emphasized that despite any pause, scientific evidence indicates that LNG exports have negative impacts on the climate and the environment, questioning the public interest in such facilities.
According to the DOE, current permits for LNG exports to non-free trade agreement countries amount to over 48 billion cubic feet per day, representing more than 45% of current domestic natural gas production. The agency predicts that the U.S. will maintain its position as the largest LNG exporter for the next six years based on the existing export capacity.