The Biden administration late last month announced a temporary pause on pending liquefied natural gas export permits, prompting business groups in Louisiana to call the decision a threat to the state’s LNG production and energy jobs.
The Jan. 26 directive, which the president said was needed to assess issues related to climate change, comes as the energy industry is developing natural gas reserves in the northern part of Louisiana.
“Louisiana’s natural gas from the prolific Haynesville Shale and its proximity to LNG facilities in Cameron Parish have put our state at the forefront as a global leader in energy,” Mike Moncla, the Louisiana Oil & Gas Association’s president, said in an email to the Louisiana Record. “A year ago, when Europe was struggling with energy supply, LNG came to the rescue. This administration continues to stifle American production while loosening mandates on our enemies.”
The decision to pause LNG export permits is simply unthinkable, according to Moncla.
“This is par for the course for the Biden administration,” he said. “Whether it’s canceling the Keystone Pipeline, reneging on offshore lease sales or now halting LNG terminals, President Biden’s war against oil and gas continues to rage on.”
Currently, three of the nation’s seven LNG export facilities are located in Louisiana, with more facilities planned, according to Louisiana Economic Development. The demand for the natural gas increased in Europe in 2022 after Russia invaded Ukraine and restricted its natural gas exports to European nations that sent arms to Ukraine.
Biden’s announcement, however, does contain an exception for “unanticipated and immediate national security emergencies.”
“During this period, we will take a hard look at the impacts of LNG exports on energy costs, America’s energy security and our environment,” Biden said in his announcement. “This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.”
The Louisiana Association of Business and Industry (LABI) vowed to fight any state or federal policy that limits the freedoms of companies to operate in a free market.
“That includes (the) announcement by the Biden administration to halt LNG export permits,” LABI President and CEO Will Green said in a prepared statement. “This decision not only sends the message to our allies abroad that they cannot rely on the U.S. for sustainable energy produced right here in Louisiana, but, perhaps more importantly, it stifles Louisiana’s competitive advantage and our position as a leader in natural gas production.”
Green is calling on the administration to reverse the permit decision and allow companies working on natural gas export projects to continue to support thousands of high-paying jobs. But environmentalists in Louisiana generally welcomed the federal move.
“Halting permits for these industries is a clear acknowledgment of the urgent need to protect the well-being and rights of those of us who have been disproportionately affected (by fossil fuel extraction),” Roishetta Ozane, director of The Vessel Project, said in a statement. “It is a powerful statement that we can no longer allow these industries to continue operating without considering the health and safety of the people living in these areas.”
Anne Rolfe, director of the Louisiana Bucket Brigade, supported the export pause as a move that will help fisheries in the state.
“The fishermen of south Louisiana are facing extinction from the gas export industry,” Rolfe said. “We are happy about the reported pause. Gas exports from the coast of Louisiana are disastrous for our fishermen, our country and our climate.”