Court: Biden administration has no right to impose blanket halt on LNG export permits

A US federal court in Louisiana on Monday opposed the US government’s decision to temporarily stop approving new projects to export liquefied natural gas (LNG). A lawsuit challenging the move by President Joe Biden’s administration was filed in district court by 16 states led by Republican governors, including Texas, Louisiana and Florida. Reuters reported the news today.

Judge James Cain, who was nominated by former President Donald Trump, said in his ruling that the ban on issuing new permits was “suspended in full, with immediate effect”.

In their lawsuit filed in March, the Republican governors argued that the Biden administration had no authority to impose a blanket refusal to issue any permits. They also said the Energy Department’s move would harm the US economy and undermine efforts to supply LNG to European allies seeking to break free from their energy dependence on Russia following its invasion of Ukraine.

The White House, by contrast, argued that approvals needed to be paused because the outdated criteria no longer adequately accounted for the economic and climate impacts of the projects. US LNG exports have surged in recent years, and following the start of Russia’s invasion of Ukraine, the country became the world’s largest LNG exporter. Last year, around half of exports went to Europe, and the Biden administration assured its allies that supplies would continue through existing infrastructure.

The International Gas Union (IGU) called the decision “very concerning” in January, saying it would “undermine global energy security and emissions reductions”. US gas industry group LNG Allies urged the White House to leave decisions on which new LNG projects should go ahead to the market.