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The U.S. Administration’s pause on approvals of new LNG export projects could last for several months until the U.S. Department of Energy reviews the grounds for authorizations, a DOE official told Bloomberg in an interview on Friday.
At the end of January, the Biden Administration said it was pausing all pending decisions on U.S. LNG export projects until the Department of Energy can update the underlying analyses for authorizations.
During the temporary pause – which is expected to affect four planned LNG export projects – DOE will carry out a new updated review on the impact of such projects on health and communities.
The pause could persist until after U.S. presidential elections on November 5. During the pause, the Department of Energy will conduct new studies on the impact these projects have on health and communities.
“We anticipate the analysis that’s underway now taking several months because this is an issue of such significant importance,” Brad Crabtree, Assistant Secretary for the DOE’s Office of Fossil Energy and Carbon Management, told Bloomberg today.
It will “take a significant period of time” for DOE to address comments and analysis “responsibly,” the official added.
Natural gas production and LNG liquefaction for exports generate emissions, but these emissions are still 50% lower than compared to burning coal.
The U.S. industry criticized the pause in permitting.
The American Petroleum Institute (API) and other major industry groups, including the American Exploration and Production Council (AXPC), Center for LNG (CLNG), Independent Petroleum Association of America (IPAA), and LNG Allies, among others, slammed the Biden Administration’s decision to halt export project approvals.
“Moving forward with a pause on new U.S. LNG export approvals would only bolster Russian influence and undercut President Biden’s own commitment to supply our allies with reliable energy, undermining American credibility and threatening American jobs,” the groups wrote in a letter to U.S. Energy Secretary Jennifer Granholm.
By Tsvetana Paraskova for Oilprice.com
