Freeport LNG
A federal court in Louisiana has stayed the Biden administration’s administrative pause on new permits for liquified natural gas exports. U.S. District Judge James Cain, Jr. ruled in favor of Texas, Louisiana, and 14 other states challenging the LNG export permitting freeze. The states had argued that the freeze, which applies specifically to LNG exports to countries with which the U.S. does not have free trade agreements, is unconstitutional.
Texas Attorney General Ken Paxton issued a statement hailing the decision as a victory. “This ruling means Biden’s illegal ban does not prevent Texas natural gas from reaching market while the lawsuit continues,” Paxton said. “While I continue fighting for Texans against the Biden Administration, producers can take their natural gas to market instead of flaring it. This will protect Texas jobs and keep our critical energy industry running.”
The move is a setback for White House efforts to address climate change. The Biden administration ordered the freeze in January, to give the Department of Energy time to evaluate the potential effects of LNG exports on overall greenhouse gas emissions.
Republican Congressman Randy Weber represents roughly a third of the Texas Gulf Coast, including much of the region’s LNG production. “People get anxious here on the Gulf Coast when the president starts – I’ll say monkeying — with permits for energy. Leave it alone. Let free enterprise run its course,” Weber said.
Judge Cain issued his ruling less than two weeks after hearing arguments in the case.
“I’m glad that they did it quickly,” Weber said. “I’m sure the Biden administration will appeal it. If it goes to the 5th Circuit (Court of Appeals), I would only hope that they too would rule within 10 or 12 days.”
Neither the White House nor the Department of Energy immediately responded to a request for comment.
David Bookbinder, director of law and policy for the Environmental Integrity Project, also expects the U.S. 5th Circuit will affirm the lower court’s ruling, given the Supreme Court’s judgment last week undermining the regulatory powers of federal agencies.
“Already, we’re dealing with an appellate court that is notoriously conservative,” Bookbinder said. “It doesn’t like environmental protections, and I think it’s going to leap at the chance to trim DOE authority and will probably uphold this judge.”