A federal judge in Louisiana has ruled that the Biden administration cannot delay consideration of liquefied natural gas (LNG) export projects while a legal challenge by 16 Republican-led states plays out in federal court. U.S. District Judge James Cain, Jr. granted a preliminary injunction, putting the administration’s delay on hold. The administration had previously decided to pause approval of new LNG export terminals, aligning with environmentalists who fear increased exports could lead to harmful emissions.
However, despite the ruling, it is unlikely that any projects will be fast-tracked for consideration as the Department of Energy disagreed with the court’s decision and is evaluating its next steps. The White House expressed disappointment, stating they remain committed to making decisions based on economic and environmental analysis.
The legal challenge was brought by a coalition of states, including Alabama, Louisiana, Alaska, Texas, West Virginia, and Wyoming, who claimed the administration’s actions violated the Constitution and other federal laws. Judge Cain temporarily blocked the administration’s ban on new approvals, citing evidence of lost revenues and deferred investments in LNG projects.
The ruling comes shortly after the Federal Energy Regulatory Commission approved the nation’s largest LNG export terminal by Venture Global in Louisiana. The project still needs approval from the Department of Energy. Republican lawmakers have criticized the administration’s pause on LNG projects, arguing it benefits foreign energy producers like Iran and Russia.
Environmental groups have also criticized the ruling, alleging that LNG exports have negative environmental impacts. The DOE reports that current authorizations for LNG exports to non-free trade agreement countries make up over 45% of domestic production and that the U.S. will remain the largest LNG exporter for the next six years.
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