Pause on approval of LNG projects hits close to home

Published 8:36 pm Friday, January 26, 2024

The Biden administration put new Liquified Natural Gas export project approvals on pause Friday, citing climate change. Climate activists call it a victory. But there is opposition. U.S. Sens. John Kennedy and Bill Cassidy, other Republican senators on the Energy and Natural Resources Committee and oil and gas industry leaders are speaking out against the decision, accusing the president of “playing politics with U.S. energy,” and endangering national security.

Louisiana exported 63 percent of the nation’s LNG in 2022, and is home to three of the top eight domestic LNG export terminals.

In Southwest Louisiana, LNG facilities enhance the economy by increasing opportunities for temporary and permanent good-paying jobs and provide more “trickle down” spending at other businesses. Calcasieu Parish would see an increase in revenue for improvements with the collection of more sales tax. Cameron and Calcasieu parishes would benefit from increased property taxes with the approval of new projects,” said Jim Rock, Lake Area Industry Alliance executive director.

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At Tellurian’s Driftwood LNG terminal in Carlyss, Sempra’s Cameron LNG terminal in Hackberry and Cheniere’s Sabine Pass LNG, between Johnson Bayou and the Texas border, it will be business as usual. The pause does not affect already approved facilities.

The decision will halt Venture Global’s CP2 project, at least for now. CP2 is the second Venture Global project situated on the Calcasieu Pass Channel  where it meets the Gulf of Mexico, a 546-acre site in Cameron. It was set to become the nation’s largest export facility.

At least two other projects in Southwest Louisiana could be placed in a holding pattern, Energy Transfer’s Lake Charles LNG and Commonwealth’s Calcasieu Pass, according to Rock. These projects were in the “awaiting approval” stage.

Climate activists weigh-in

General Russel Honoré, Green ARMY salutes Biden’s announcement to stop work on CP2. In a statement to the American Press, the general said, “It’s heartening to see the administration take a critical look at the damage another massive gas export terminal would cause.”

The former U.S. Army commander has followed the oil and gas industry’s national security claims about exported LNG.

“The idea that exporting American gas is good for our national security is just a public relations tactic the industry likes to use to avoid scrutiny and accountability.”

He claimed Europe’s needs for gas are being met without needing Russian imports or increased capacity here in the U.S.

“Exporting puts the United States at a disadvantage and the buildout of additional export terminals create more vulnerable targets along the Gulf Coast. We can better bolster our national security by keeping this gas where it belongs, deep in the ground here in the United States.”

Anne Rolfes, Louisiana Bucket Brigade, said, “a pause can be unpaused anytime.” The Bucket Brigade, a grassroots organization that engages in action to hasten the transition from fossil fuels, has shed light on LNG underreporting violations at their facilities. The Bucket Brigade and Fishermen Involved in Sustaining Our Heritage (FISH) want Biden to deny all gas export terminals and phase out the ones that are operating.

John Allaire lives in Cameron, close enough to Venture Global LNG Export Terminal that he could stand on his 300 acres to  see and hear the problems when the company began operations in 2022. He saw black smoke. He heard alarms and said flares were “going constantly.”

This past summer, the American Press reported that Venture Global had more than 2,000 permit violations and the state ordered the facility to come into compliance.

Commonwealth LNG and CP2 would also be in Allaire’s  “backyard.” He wrote to the Federal Energy Regulatory Commission (FERC) during the window the agency welcomes environmental impact statements from the public. The construction of the Commonwealth facility would eliminate 100+ -acres of coastal wetlands, an estimated 65 acres of cheniers and 1300 feet of shallow water river shoreline on the Calcasieu River was among Allaire’s comments.

LNG stabilizes energy markets and provide job growth

U.S. Senator Kennedy wrote the Department of Energy Secretary Jennifer Graholm to say that Biden’s decision would “crush a burgeoning U.S. industry that employs thousands of Americans, provides cheap and reliable energy to millions and is a vital investment in weening the world off of dirty Russian energy” according to a press release.

Cassidy and 25 Republican colleagues wrote to the President and Granholm. The letter stated, “This ‘LNG Plan’ drafted without input from Congress could have significant economic, environmental and national security consequences domestically and globally. (Natural gas burns cleaner than coal)  It would be reckless to jeopardize our advantage, especially in a world where energy is frequently being used as a geopolitical weapon…. As the President of the United States and as the Secretary of Energy, you should be championing – not undermining – American LNG exports and the environmental, economic, and national security benefits to the United States and our allies.”

The Louisiana Association of Business and Industry (LABI) President and CEO Will Green said the pause “limits the ability for companies to operate in a free market” and will “stifle Louisiana’s competitive advantage and position as leader in natural gas production.”

Tommy Faucheaux, Louisiana Mid-Continent Oil and Gas Association (LMOGA) president released this statement on Friday. “There is no review needed to understand the clear benefits of U.S. LNG for stabilizing energy markets, supporting the energy transition. Our industry is proud to support our international allies and global emissions goals but the geopolitical and climate benefits of American energy exports cannot be maintained with policy decisions that create unnecessary hurdles and hinders the export approval process.”

DOE, as directed by the President, will update its economic and environmental analyses used to review LNG export applications to non-Free Trade Agreement countries, according to the DOE website.

The temporary pause will not affect already authorized exports or affect the nation’s ability to supply allies in Europe, according to the website. It’s been ten years since evaluations were put in place, the pause will allow for integrating the current environment and national security considerations.