In January, the U.S. government made the decision to pause the approval of new licenses for exporting liquefied natural gas (LNG) to countries that are not trade partners of the United States. However, in July, a federal court blocked this temporary moratorium, stating that it was “completely without reason or logic.” As a result, the U.S. Energy Department (DOE) granted the first license for exporting LNG since the court ruling.
The DOE approved a five-year term for New Fortress Energy (NFE) to export U.S.-sourced natural gas from its offshore plant in Altamira, Mexico, to non-free trade agreement countries. This license allows NFE to export up to 1.4 million tonnes per annum of LNG to countries without free trade agreements with the United States.
Wes Edens, the CEO of NFE, expressed his enthusiasm about the decision, stating that it will enable the company to supply cheaper and cleaner natural gas to underserved markets worldwide. However, this move has raised concerns among some advocacy groups.
Allie Rosenbluth, U.S. program manager at advocacy group Oil Change International, criticized the DOE’s decision, claiming that it goes against their commitment to pause approvals for LNG export projects. Rosenbluth emphasized the need for the government to consider the risks LNG exports pose to the climate, environment, and public health and safety.
Mitch Jones, managing director of policy and litigation at Food & Water Watch, also expressed disappointment, describing the DOE’s decision as “ridiculous.” Jones argued that as the negative impacts of increased fossil fuel development become more apparent, the idea of expanding LNG exports should be dismissed.
However, there were already concerns regarding the initial freeze on LNG export licenses. Over 150 Republican lawmakers pushed back against the moratorium, believing it to be economically and strategically dangerous. They argued that the ban threatened the energy security of U.S. allies, put infrastructure projects at risk, and deprived states of valuable LNG export revenues.
In March, a coalition of 16 states, led by Louisiana, filed a legal challenge against the moratorium. They contended that the temporary ban violated various laws and the U.S. Constitution. The coalition emphasized the importance of LNG exports to the economy, job creation, and national security.
Ultimately, a federal judge at the U.S. District Court for the Western District of Louisiana sided with the coalition of states, leading to the blocking of the moratorium.
The decision to grant the new LNG export license to NFE has sparked controversy and debate. While some argue that it will promote economic growth and energy security, others express concerns about the environmental and public health implications. The ongoing conflict between the government, advocacy groups, and states highlights the complex nature of the LNG export industry and the need to balance economic interests with environmental and public welfare.
. Learn about the economic and strategic concerns raised by Republican lawmakers and the criticism from advocacy groups regarding the environmental and public health implications. This article explores the complex nature of the LNG export industry and the ongoing conflict between economic interests and environmental welfare.){kind=link}