The Biden administration’s pause on new LNG exports should be reversed “immediately” as it is not based on facts, Senator Joe Manchin (D-W.Va) said during a recent hearing.
In January, President Joe Biden announced a temporary pause on approving new LNG exports, and promised to take “a hard look at the impacts of LNG exports on energy costs, America’s energy security, and our environment.” During a Senate hearing on Feb. 8, Mr. Manchin questioned whether the White House’s decision was based on facts or was politically motivated.
“If I’m correct, DOE (Department of Energy) is just now beginning its new analysis of the economic impacts of our growing export levels. If that is the case, this pause should be reversed immediately. Facts must come before action, not the other way around,” Mr. Manchin said.
“Unfortunately, it seems the White House has already sided with climate activists determined to block any more LNG exports, and I am deeply concerned the White House will put its thumb on the scale at DOE to get the political outcome they want,” the senator added.
“The White House has gone out of its way to signal that the pause is a political ploy intended to get votes in an election year, it’s all about politics, not economics.”
The Biden administration claimed in January that the current economic and environmental analyses the DOE uses for its LNG export authorizations are five years old and do not account for factors like “the impact of greenhouse gas emissions” and “potential energy cost increases for American consumers and manufacturers.”
“Today, we have an evolving understanding of the market need for LNG, the long-term supply of LNG, and the perilous impacts of methane on our planet.” These factors must also be taken into account by the DOE when considering LNG export authorizations, the administration stated.
At the hearing, Mr. Manchin agreed that “a lot has changed in a few years” and said there are “sensible reasons” to update market assessments used by the DOE when reviewing LNG export applications.
However, the Biden administration “hasn’t actually done its new market assessment yet or presented us any facts that justify this pause at all.”
“If we were talking about considering a pause, this is a great panel for this. You have an executive order doing a pause. That’s the difference. You’ve put the cart before the horse … You don’t draw the brakes on everything and send scare tactics around the world before we know for sure.”
The senator pointed out that LNG exports account for about 14 percent of current U.S. production capacity. He asked Charlie Riedl, executive director for the Center for LNG, what an acceptable export capacity level would be that would not harm American consumers. “If permits were not an issue, where do you assess our exports would cap out at, if any?”
Mr. Riedl replied that the U.S. market has “demonstrated the ability to absorb” the increase.
“The comment earlier that we’re at 14 percent of current production value; production will rise to match that. The market will determine exactly just how much more volume is brought on. When we start trying to pick winners and losers in projects, I think we’re automatically losing,” he stated.
‘Wrong Step’
The Biden administration’s move to pause LNG exports could have a significant impact on the development of the LNG infrastructure in the United States.
Before the DOE considers LNG export authorization, a natural gas project must be approved by the Federal Energy Regulatory Commission (FERC).
In an interview with CNBC last month, Secretary of Energy Jennifer Granholm said that the pause will affect thirteen projects with a capacity of 12 billion cubic feet. These projects are currently in the queue between the FERC and the DOE.
Mary Landrieu, a Democrat who served as a senator from Louisiana, said she was deeply disappointed by the administration’s decision. “I think politically it’s the wrong step for our economy and it undermines the president’s own climate initiatives,” she said.
Halting LNG exports “undermines” the CHIPS Act and the Infrastructure Bill’s aim to trigger an industrial renaissance in the United States, Ms. Landrieu pointed out.
“The reason it does is because natural gas is the only available, scalable, low cost, lower emission fuel or foundational fuel to build this economy.”
The United States currently does not have enough hydro or nuclear power to facilitate such an economy, she noted. And even though wind and solar energy are coming online, “they are not sufficient, nor do they run 24/7.”
Moreover, there was an “international aspect” to the decision, she said. “This pause undermines our national security and sends the absolute wrong signal to our allies around the world that we’re reconsidering a promise we made to them.”
This issue was also brought up by Mr. Manchin during the hearing.
“We also have a responsibility to our allies and trading partners who may have no other choice but to turn to countries that don’t share our values if they can’t count on American support,” he warned. “Politicizing LNG exports is reckless and dangerous and it could empower and enrich Russia, Qatar, and Iran.”
He asked Dr. James Watson, the secretary general of Eurogas, how the Biden administration’s pause will impact their long-term agreements for American LNG.
Dr. Watson replied, “Everything depends upon having a stable relationship … I think there is a strong concern about the pause because in essence we still take a lot of Russian LNG and pipe gas.”
Mr. Manchin asked whether a reliable and long-term supply of LNG from the United States would enable Europe to end its Russian dependency.
“That would certainly be the objective,” Dr. Watson stated.
From The Epoch Times