Several states, including Texas, Louisiana, and Florida, argue that the federal government does not have the authority to broadly deny permits.
Sixteen states, including Texas, Louisiana, and Florida, have jointly filed a lawsuit challenging the US federal government’s ban on approving applications to export liquefied natural gas (LNG), announced the office of Texas Attorney General Ken Paxton on Thursday.
Basis of Lawsuit
The lawsuit argues that the federal government lacks the authority to broadly deny permits for LNG exports.
It challenges the legality of the pause imposed by President Joe Biden, which aims to review the process for evaluating the economic and environmental impacts of LNG projects seeking approval to export the fuel to high-demand markets in Europe and Asia.
Impact of the Pause
President Biden’s decision to pause LNG approvals has raised concerns about the future of planned gas export terminals along the Gulf of Mexico coast. Environmental groups and some local residents have expressed worries about the potential environmental impact of these projects.
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An analysis suggests that proceeding with all proposed LNG projects could result in significant greenhouse gas emissions, equivalent to the entire emissions of the European Union.
Response from President Biden
President Biden characterized the pause on new LNG approvals as a response to the climate crisis, referring to it as the “existential threat of our time.”
The administration aims to reassess its approach to LNG exports to align with environmental and climate goals.
Lawsuit Details
The lawsuit was filed in federal court in Lake Charles, Louisiana. It argues that the Department of Energy’s pause will harm the economy and hinder efforts to supply LNG to European allies seeking alternatives to Russian piped gas.