Federal judge blocks Biden administration’s LNG export ban

(Bloomberg) — A federal judge has put on hold Joe Biden’s temporary moratorium on new U.S. liquefied natural gas (LNG) export licenses, though the decision is unlikely to immediately speed up the issuance of permits.

U.S. District Judge James D. Cain Jr. in Louisiana issued a preliminary injunction Monday in a lawsuit filed by 16 states that argued Biden violated federal law by halting licenses in January to assess the impact of transmission on climate change. West Virginia Attorney General Patrick Morrisey called the decision “a major victory for the nation’s energy industry and the millions of jobs it supports.”

Climate activists have argued that LNG exports would sustain the world’s dependence on fossil fuels and further global warming. But U.S. gas producers and advocates say halting licensing risks damaging allies dependent on U.S. energy supplies, as well as billions of dollars in LNG export projects.

The Energy Department disagrees with the court’s ruling but is “continuing to review the court’s order and evaluate next steps,” according to a statement from the agency.

About $61 billion in pending infrastructure in Louisiana is at risk because of the outage, state Attorney General Liz Murrill said Monday, calling the decision “a major victory for American energy.”

Approvals on holdUnder Biden, the Energy Department has stopped approving new licenses for LNG exports to Asian nations and other countries that are not free trade partners with the U.S. while the agency examines how supplies impact climate change, the economy and national security.

The pause only applied to new licenses. The U.S. is the world’s largest LNG exporter and has more room to grow under existing licenses.

While the court order immediately orders a stay, the short-term practical impact is likely to be minimal. Under federal law, the Energy Department reviews whether such LNG exports are in the public interest — and may continue to review applications for new export licenses on a case-by-case basis.

The case is Louisiana v. Biden, 24-cv-406, U.S. District Court, Western District of Louisiana (Lake Charles).