This week, a federal judge blocked President Joe Biden's administration from continuing to pause the approval of applications to export LNG, a setback for Biden's climate agenda.
Judge Cain, appointed by former President Donald Trump, stated that the states were likely to prove that the pause violated the Natural Gas Act and was arbitrary, capricious, and unconstitutional. He criticized the Energy Department's actions as beyond its authority and noted the economic and environmental benefits of LNG exports.
An Energy Department spokesperson expressed disagreement with the ruling and said they are evaluating next steps. The Biden administration had announced the pause in January to review the economic and environmental impacts of LNG export projects. Climate activists supported the move, which could have delayed decisions on new plants until after the November 5 presidential election.
However, the pause angered gas industry officials who feared it could jeopardize investments in projects nearing a final investment decision. It created uncertainty for LNG export projects still awaiting licenses, such as Venture Global's proposed 28 million mt/yr CP2 project in Louisiana, which recently cleared a significant part of the federal permitting process.
Republican-led states, including Texas, Louisiana, and Florida, sued in March, arguing that the policy would harm the economy and hinder efforts to supply Europe with LNG as it seeks to reduce reliance on Russian gas. The states claimed the pause overstepped the DOE's authority under the Natural Gas Act and jeopardized billions of dollars in planned investments for export facilities.
