The Biden administration pauses approval of new gas export terminals

President Biden on Friday paused the permitting process for new liquefied natural gas export facilities to analyze their impact on climate change, the economy and national security.

“People in every corner of the country and the world are suffering the devastating toll of climate change,” Biden said in a statement. “This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.”

The move could spell trouble for what would be the nation's largest export terminal, a proposed $10 billion project in Louisiana that has come under scrutiny for its potential environmental impacts.

Mr. Biden's election-year decision is seen as a victory for climate activists who have been pressing the government to curb fossil fuels at a time when greenhouse gas emissions must fall quickly to avoid climate catastrophe.

Gas, which consists mainly of methane, is cleaner than coal when burned. But methane is a much more powerful greenhouse gas than carbon dioxide in the short term. And it can leak anywhere in the supply chain, from the production pit to processing plants to the cooktop. The process of liquefying gas to transport it is also incredibly energy intensive, creating even more emissions.

More than 150 scientists signed a letter dated December 19 to Mr. Biden, urging him to reject the Louisiana project known as Calcasieu Pass 2, often referred to as CP2, and additional proposed facilities.

In just eight years since the country first began shipping natural gas abroad, the United States has become the world leader in LNG exports.

The oil and gas industry denounced the decision as a “win for Russia and a loss for America's allies,” arguing that gas supplies to Europe and Asia, which have soared since Russia's invasion of Ukraine, are helping fuel coal repressed.

“This is nothing more than a broken promise to America's allies, and it is time for the administration to stop playing politics with global energy security,” said Mike Sommers, president of the American Petroleum Institute, a trade group.

Senator Bill Cassidy, Republican of Louisiana, whose state is home to several gas export terminals, said in a statement that “Putin must have designed this strategy.”

But this week, 100 European lawmakers wrote to Mr. Biden saying they would welcome a break.

American gas, savings and a build-out of renewable energy have helped Europe avoid an energy crisis by turning off Russia's tap. “We are concerned that a misrepresentation of European energy needs is now being used as an excuse by the fossil fuel industry and their allies to dramatically expand USLNG exports to the global market,” the lawmakers wrote.

White House officials said exceptions would be made in cases of “unexpected and immediate national security emergencies.”

The pause on permits will not affect terminals that have already been approved. The United States has seven terminals and five more are under construction. But another 17 projects are seeking approval.

There is little division within the White House over the decision to delay CP2 because the United States already ships so much gas abroad, said people familiar with the discussions, who asked not to be named because they were not authorized were to speak in public. That capacity will almost double over the next four years, making the need for CP2 less urgent.

“Today, we have an evolving understanding of the market need for LNG, the long-term supply of LNG, and the dangerous impacts of methane on our planet,” according to a fact sheet distributed by the White House. “We must also adequately protect ourselves from risks to the health of our communities, especially frontline communities in the United States that are disproportionately bearing the burden of pollution from new export facilities.”

Climate activists celebrated the move and canceled a protest they had planned for next week outside the Energy Department.

“The tide is turning,” said Colin Rees of Oil Change International, a group that wants to end fossil fuels. He called the pause “one of the most important actions ever taken by an American president to stop the dangerous expansion of fossil fuels and protect environmental justice.”

The review, which will be conducted by the National Laboratories, and a public comment period is expected to last months, almost certainly after the November presidential election.

Mr. Biden has an ambitious climate agenda but generally shies away from attacking the fossil fuel industry. The rare exception occurred when gas prices rose after Russia's invasion of Ukraine and the president castigated the industry for not producing enough oil while raking in record profits.

Friday's announcement hinted at a different approach, one that was welcomed by climate activists eager to see the president take on oil and gas companies.

“My administration will not be complacent,” Biden said. “We will not give in to special interests. We will answer the calls of young people and communities on the front lines who are using their voices to demand action from those with the power to act.”