US court halts pause on DOE non-FTA LNG export permits

A federal district judge in Louisiana has blocked a decision by the Biden administration on issuing non-FTA liquefied natural gas (LNG) export permits for new projects.

The Biden administration and the Department of Energy (DOE) announced in January this year that the DOE will temporarily pause review and approval of all new and pending applications for export authorization to non-free trade agreement (non-FTA) countries while DOE updates its assessment process.

US LNG firms such as Commonwealth LNG delayed final investment decisions on their LNG export developments citing the DOE pause in permit reviews, while the ban has impacted projects being developed by Sempra, Venture Global LNG, Cheniere, Energy Transfer, etc.

Sixteen states

In March this year, sixteen Republican-led states filed a lawsuit with the US District Court for the Western District of Louisiana to challenge the ban on permits requesting a stay on the decision.

The countries are Louisiana, Alabama, Alaska, Arkansas, Florida, Georgia, Kansas, Mississippi, Montana, Nebraska, Oklahoma, South Carolina, Texas, Utah, West Virginia, and also Wyoming.

“As to the motion for preliminary injunction, the Court finds that the plaintiff states are entitled to the injunctive relief requested as to the LNG export ban,” according to a ruling signed by Judge James Cain.

“Accordingly, the Court will grant plaintiffs’ motion for preliminary injunction, and order that the LNG export ban be stayed in its entirety, effective immediately,” the ruling said.

It remains unclear how this ruling will be implemented.

Several reports said, citing a statement by the DOE, that the regulator disagrees with the ruling, and will review the court’s order and evaluate next steps.

Approval for Venture Global’s CP2 LNG

This ruling comes just days after the US FERC has given the green light to Venture Global LNG for its proposed CP2 LNG project in Louisiana.

The regulator issued a final environmental impact statement for the CP2 LNG project, Venture Global’s third LNG export terminal, in July last year.

Besides the FERC approval, CP2 LNG also needs the non-FTA export authorization from the DOE.

Most Popular

Worley gets full notice to proceed on first phase of CP2 LNG project

Australian engineering firm Worley has received a full notice to proceed from US LNG exporter Venture Global LNG under its reimbursable EPC contract for the first phase of the CP2 LNG project in Louisiana.

Baker Hughes to buy Chart in $13.6 billion deal

US energy services firm Baker Hughes has entered into a definitive deal to buy compatriot LNG equipment maker Chart Industries. The transaction is worth $13.6 billion.

Knutsen takes delivery of QatarEnergy LNG carrier

Norwegian shipowner Knutsen has taken delivery of another 174,000-cbm liquefied natural gas (LNG) carrier built as part of the massive QatarEnergy shipbuilding program.

More News Like This

Netherlands was top destination for US LNG cargoes in May

Dutch Gate and Eemshaven LNG terminals were the top destinations for US liquefied natural gas cargoes in May, according to the Department of Energy’s LNG monthly report.

Atlantic LNG shipping rates remain steady, European prices down

Atlantic spot LNG shipping remained steady this week, whilst European prices dropped compared to last week.

Venture Global’s Plaquemines LNG seals new gas supply deal

Venture Global LNG’s Plaquemines LNG has signed a new natural gas sale and purchase deal with gas marketer Tenaska Marketing Ventures, according to a DOE filing.

US LNG exports down to 28 cargoes

US liquefied natural gas (LNG) plants shipped 28 cargoes during the week ending July 23. According to the Energy Information Administration, pipeline deliveries to the LNG terminals decreased compared to the prior week.