How Biden Administration’s liquified natural gas rule affects Texas

AUSTIN (KXAN) — The Biden administration decided Friday it would temporarily pause decisions on new liquified natural gas. or LNG, exports in the United States in connection with addressing climate change.

In a social media post, Texas Gov. Greg Abbott said the freeze of LNG exports threatened Texas.

"This reckless decision is a gut punch to the hard-working men and women in the energy industry. It also could cause some countries to rely upon dirty coal as opposed to cleaner burning natural gas," Abbott said.

The Biden administration said the pause would allow the Department of Energy to update its criteria for authorizations, as well as provide time to integrate critical environmental considerations.

"Today, we have an evolving understanding of the market need for LNG, the long-term supply of LNG, and the perilous impacts of methane on our planet," the administration said. "We also must adequately guard against risks to the health of our communities, especially frontline communities in the United States who disproportionately shoulder the burden of pollution from new export facilities."

Sierra Club, an environmental organization, said the 12 impacted projects would produce as much pollution as 223 coal plants per year.

"Major expansions sought for two LNG facilities in Texas – Port Arthur LNG and Corpus Christi Midscale – have been paused while this review proceeds. While two LNG facilities proposed in Brownsville have already been approved by DOE and are not directly subject to the announcement, but face additional hurdles with federal court challenges," Sierra Club said.

Texas Railroad Commission Chair Christi Craddick issued a statement after the announcement about halting LNG exports.

"The Biden Administration’s announcement that they are halting all future LNG exports takes a unilateral hammer to the American economy, American jobs, and national security. President Biden is scaling up his assault on America’s energy industry to the profit and benefit of countries who are not our allies. This is a major mistake," Craddick said.

This pause won't affect export projects that have already been authorized, Energy Secretary Jennifer Granholm said. She added it also won't impact U.S. supplies to Europe or Asia because the United States already has seven terminals open and others expected to start operating in the next few years.

The Associated Press asked her and others how long the pause would last, but they did not specify beyond saying studying how proposed projects will affect the environment, national security and the economy will likely take "some months." A public comment period will follow that and delay decisions on pending projects until after the 2024 presidential election, the AP wrote.

“We remain committed to ensuring our partners’ medium-term energy needs are met,” she told reporters at a White House briefing late Thursday, adding they can allow exceptions for national security needs.

The U.S. has become the world's largest LNG exporter since it started less than a decade ago, the AP reports.

The Associated Press contributed to this report.