The Biden administration on Friday took steps to delay or even block future LNG exports through the Gulf of Mexico in a move that could have ripple effects all the way back into Canada.In a move hailed by environmentalists, Biden on Friday slammed the brakes on approvals of new LNG projects that export gas to countries it doesn’t have free trade agreements that address climate change.The pause allows for exceptions to be made for unanticipated and immediate national security emergencies, ostensibly to protect exports to Europe which is feeling the squeeze from shifting always from Russia as its major supplier.."This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time,"US President Joe Biden."This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time," Biden said in a statement. "While MAGA Republicans willfully deny the urgency of the climate crisis, condemning the American people to a dangerous future, my administration will not be complacent. We will not cede to special interests."Although it’s billed as a “temporary measure” the US Department of Energy (DOE) is being tasked with drafting new guidelines used to make authorizations. That review isn’t expected to be complete before the November election and directly impacts at least a dozen LNG export terminals along the Gulf Coast.The halt impacts one project in particular, the USD$10 billion Calcasieu Pass 2 project on the Louisiana coast which would be the largest gas export terminal in the US — the world — when finished..Other activists cast it as an election issue designed to placate Biden’s shrinking base. Michelle Weindling, political director of the youth-based Sunrise Movement, said the move would increase support from young voters, considered crucial to Biden's election prospects in 2024."Young people are the largest voting bloc in this country and they vote for the issues that they care about," she said. "It needs to be seen that leaders are leading boldly and unapologetically to solve this crisis.".Natural gas exports from the US — which previously imported virtually all of its shortfall from Canada — only began in 2016. In less than a decade, it has become the world’s largest exporter and now ranks as Canada’s biggest competitor in the lucrative LNG market.The last review of export projects was in 2018 when export capacity was barely 4 billion cubic feet (bcf) per day; it now sits around 13 bcf per day. By comparison, Alberta produced about 11 bcf per day in 2022.Canadian gas producers are increasingly looking south of the border while LNG export projects are backed up on this side of the border.Calgary-based Tourmaline Oil announced last week that it was increasing the amount of LNG exported off US shores even as it awaits completion of Shell’s massive LNG Canada project near Kitimat.It’s not immediately clear if or how it would impact future plans to boost LNG exports some 15% in 2024.
The Biden administration on Friday took steps to delay or even block future LNG exports through the Gulf of Mexico in a move that could have ripple effects all the way back into Canada.In a move hailed by environmentalists, Biden on Friday slammed the brakes on approvals of new LNG projects that export gas to countries it doesn’t have free trade agreements that address climate change.The pause allows for exceptions to be made for unanticipated and immediate national security emergencies, ostensibly to protect exports to Europe which is feeling the squeeze from shifting always from Russia as its major supplier.."This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time,"US President Joe Biden."This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time," Biden said in a statement. "While MAGA Republicans willfully deny the urgency of the climate crisis, condemning the American people to a dangerous future, my administration will not be complacent. We will not cede to special interests."Although it’s billed as a “temporary measure” the US Department of Energy (DOE) is being tasked with drafting new guidelines used to make authorizations. That review isn’t expected to be complete before the November election and directly impacts at least a dozen LNG export terminals along the Gulf Coast.The halt impacts one project in particular, the USD$10 billion Calcasieu Pass 2 project on the Louisiana coast which would be the largest gas export terminal in the US — the world — when finished..Other activists cast it as an election issue designed to placate Biden’s shrinking base. Michelle Weindling, political director of the youth-based Sunrise Movement, said the move would increase support from young voters, considered crucial to Biden's election prospects in 2024."Young people are the largest voting bloc in this country and they vote for the issues that they care about," she said. "It needs to be seen that leaders are leading boldly and unapologetically to solve this crisis.".Natural gas exports from the US — which previously imported virtually all of its shortfall from Canada — only began in 2016. In less than a decade, it has become the world’s largest exporter and now ranks as Canada’s biggest competitor in the lucrative LNG market.The last review of export projects was in 2018 when export capacity was barely 4 billion cubic feet (bcf) per day; it now sits around 13 bcf per day. By comparison, Alberta produced about 11 bcf per day in 2022.Canadian gas producers are increasingly looking south of the border while LNG export projects are backed up on this side of the border.Calgary-based Tourmaline Oil announced last week that it was increasing the amount of LNG exported off US shores even as it awaits completion of Shell’s massive LNG Canada project near Kitimat.It’s not immediately clear if or how it would impact future plans to boost LNG exports some 15% in 2024.
