There’s some nuance in the story, but essentially the Biden administration is not approving or extending Liquified Natural Gas (LNG) export permits to nations who do not have free trade agreements (FTA’s) with the United States. This is causing expansion issues in the LNG industry as needed investment capital by the industry is negatively impacted.
The Biden administration says they are pausing the permitting while they study climate change. However, the Biden administration is also unilaterally sending LNG to Europe to support the NATO objective to hamper the Russian economy (not working).
As a consequence, the Biden administration (think Biden family) is controlling the outflow of LNG; essentially putting themselves in a position of financial influence over the LNG industry. Who is controlling whom, and why?
HOUSTON, Texas — The liquefied natural gas industry has criticized the Biden administration for pausing export permits on LNG as uncertainties arise for developers planning massive amounts of investment.
Major U.S. exporter Freeport LNG’s Chief Executive Officer Michael Smith said Wednesday in an interview on the sidelines of the CERAWeek energy conference in Houston that “you won’t get this resolved till after the presidential elections” in November.
The U.S. Department of Energy, which issues permits for LNG export projects to countries that are not part of free trade agreements, announced in January that the government will pause permits to review how the projects affect climate change, national security and the economy.
The world’s largest LNG exporter’s sudden policy announcement has rippled through Asia, the largest consumer of the gas.
On Monday, Energy Secretary Jennifer Granholm told the audience at CERAWeek that the review will be in the “rear-view mirrors” by March next year. However, the secretary’s comments have not satisfied LNG companies.
“I am encouraged by the secretary’s comments, but I think that there’s still some significant risk that the timing will slip from what she said,” Smith said, pointing to similar study done by the Obama administration more than a decade ago, which led to a lengthier permitting process.
The LNG industry has complained that the uncertainty will make it difficult for developers to invest in the projects. Furthermore, while the U.S. has increased LNG exports to allies in Europe and Asia following the Russian invasion of Ukraine, Japan and Europe have raised concerns that the pause could potentially lead to supply shortages. (more)
Read between the lines, they never stopped….
