President Joe Biden has paused all new export applications for liquefied natural gas, caving to the demands of environmental activists who say they contribute to climate change..
But, some of the top business groups from around the world are saying that this pause has caused massive problems for the globe.
A collection of business groups sent a letter to Biden recently, telling the president they’re concerned about his decision, which pauses all new LNG export license applications to all countries in the FTA, or non-free trade agreement.
The letter was sent jointly by the Japan Business Federation known as the Keidanren, Business Europe and the U.S. Chamber of Commerce. It reads:
“As you know, non-FTA countries Japan and the European Union, both of which are heavily dependent on imports of U.S. LNG for energy security. We urge you to reconsider this decision in light of the unique and vital role of American natural gas in meeting the critical energy security and Paris Agreement objectives that our nations share.”
The Department of Energy implemented the pause on authorizing new requests for LNG exports so the agency can consider whether these exports to the non-FTA nations are in the best interest of the public.
All export applications that have already been approved will not be affected by this move.
The DOE also said recently that America has the capacity to export 14 billion cubic feet of LNG each day, and there are already 48 billion cubic feet already approved.
In a statement that announced the pause on new export applications, Jennifer Granholm, the secretary of energy, said:
“The administration is committed to the affordability of energy and economic opportunities for all Americans, ensuring energy security here in the U.S. and with our allies; and protecting Americans against climate change and winning the clean energy future. This practical action will ensure the DOE remains a responsible actor using the most up-to-date economic and environmental analyses.”
Yet some people believe that the pause is going to devastate not only the economy across the world, but also domestic producers of natural gas.
Phil Flynn, a contributor to Fox Business Network, commented on this recently when he said:
“A lot of them invested a lot of money on the perception that President Biden was going to make good on his promise to supply Europe with reliable energy like liquefied natural gas, and playing politics with this decision is costing them a lot of money and could put a lot of them out of business.”
He added that, in contrast to what environmental activists are saying, the pause on LNG export applications is actually “terrible for the environment.”
That’s because, according to Flynn, LNG “is one of the cleanest burning fossil fuels. It’s the only reason the world can replace coal.
“If we don’t export LNG, I guarantee you the world’s going to burn a lot more coal and make the world a dirtier place.”
