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Prominent Biden Official to Justify LNG Pause in Senate Hearing

Biden (Credits: ABC News)

Scheduled for Thursday is a Senate hearing where a high-ranking official from the U.S. Department of Energy is poised to defend President Joe Biden’s decision to halt approvals for liquefied natural gas (LNG) exports.

Deputy U.S. Energy Secretary David Turk is set to testify before the Senate Energy and Natural Resources Committee, and the hearing has been convened by Senator Joe Manchin, a Democrat hailing from natural gas-producing West Virginia.

Manchin has expressed his intent to scrutinize the decision, emphasizing that if the pause is perceived as a political maneuver catering to climate activists at the expense of American workers and allies, he will take measures to promptly end the pause.

Biden (Credits: Brookings Institution)

President Biden instituted the indefinite pause on approvals to allow his administration a comprehensive examination of the environmental and economic implications associated with the burgeoning LNG industry.

Last year, the U.S. secured its position as the world’s leading LNG exporter, and projections anticipate a doubling of shipments by the decade’s end based on projects already given the green light.

The move to slow approvals aligns with mounting pressure from environmentalists and youth groups, crucial components of Biden’s support base, urging caution in approving fossil fuel projects due to concerns about their greenhouse gas emissions.

On the domestic front, various industries, including chemicals, steel, food, and agriculture, have voiced opposition to unchecked U.S. gas exports, citing potential repercussions on fuel prices.

The challenge for opponents of the approval pause lies in the uncertainty of overturning it. Legislative proposals in both the Senate and the House of Representatives aim to transfer the authority for approving exports from the Department of Energy to the independent Federal Energy Regulatory Commission (FERC).

However, passing such legislation in an election year poses significant hurdles. Even if it clears the House, it is likely to face resistance in the Senate, where Democrats hold the majority.

Analysts, such as Benjamin Salisbury from Height Capital Markets, anticipate that even if Congress successfully intervenes, the robust approach of shifting the review process to FERC and deeming exports in the public interest may be too assertive for Democrats. The prevailing expectation is that compromise language with a less defined impact would be a probable outcome.

As the Senate hearing unfolds and the debate over LNG exports continues, the clash of interests between environmental considerations, economic implications, and political maneuvering underscores the complexity of energy policy decisions in a rapidly evolving global landscape.

The outcome of this debate may not only shape the trajectory of LNG exports from the U.S. but also influence broader discussions on environmental sustainability and economic priorities.

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