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Debate Over New Louisiana LNG Export Project
Amid increasing tension, the Biden administration is deliberating over the proposed Louisiana LNG (liquefied natural gas) export project, Venture Global's Calcasieu Pass 2 (CP2). The proposed project has raised eyebrows among environmentalists who fear the facility could negatively impact U.S. climate objectives; however, proponents argue that the initiative is crucial for maintaining international energy stability.
Federal Energy Regulatory Commission's Role
The proposed project awaits a decision from the Federal Energy Regulatory Commission, a trio of regulators expected to rule on its approval in the coming weeks or months. Venture Global's planned CP2 terminal, if approved, will be two-fold larger than its current plant, boasting an export capacity of 20 million metric tons annually.
The Concerns of Environmentalists
Bill McKibben, a celebrated environmentalist known for his campaign against the aborted Keystone XL oil pipeline, argues that the approval of the CP2 would be a grave error. He posits that CP2 would produce more damaging greenhouse gases than the ConocoPhillips Willow oil and gas project in Alaska, which was approved by the Biden administration last year and is currently the subject of numerous lawsuits by environmental groups.
Potential Suspension of LNG Approval
As per insider information, the Biden administration is currently contemplating performing a stringent inspection on LNG export permits, with a specific emphasis on its impact on climate change. One potential resolution includes putting a halt on all permits until the environmental review is finalized.
Pressure from Business Groups
The Biden administration is concurrently facing mounting pressure from business organizations in Europe and Asia to greenlight LNG initiatives. Firms such as the Singapore-based Asia Natural Gas & Energy Association highlight how LNG aids the transition from coal in Asian nations. Eurogas, a conglomerate of 77 entities, has implored the U.S. to forgo an unnecessary embargo on LNG exports to Europe, particularly in light of Russia's invasion of Ukraine.
The Road Ahead
Industry insiders suggest that the Biden administration will likely refrain from issuing any new export licenses prior to the November elections. This stance arises in the backdrop of increasing pressure from environmentalists and Democratic lawmakers.
