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

Inpex launches Abadi LNG FEED work

Japan's Inpex has launched the front-end engineering design (FEED) work for the Abadi LNG project in Indonesia. The contractors include Technip Energies, JGC, Saipem, Tripatra, McDermott, and Worley.

Technip Energies expects ‘important’ LNG awards in next 18 months, CEO says

LNG engineering giant Technip Energies is confident in its positioning for "important" LNG awards in the next 6-to-18 months, with the US expected to be one of the most active regions, according to CEO Arnaud Pieton.

Venture Global’s Plaquemines LNG to commission fourth tank

US LNG exporter Venture Global LNG has received approval from the US FERC to commission the fourth storage tank with LNG at its Plaquemines plant in Louisiana.

More News Like This

Atlantic LNG shipping rates climb, Pacific rates down

Atlantic spot LNG shipping rates increased this week, while Pacific rates declined compared to the week before.

US LNG exports reach 28 cargoes

US liquefied natural gas (LNG) plants shipped 28 cargoes during the week ending July 30. According to the Energy Information Administration, pipeline deliveries to the LNG terminals decreased compared to the prior week.

Tourmaline, Uniper seal long-term gas supply deal

Canada’s largest natural gas producer Tourmaline said it had entered into a long-term LNG feed gas supply agreement with Uniper.

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.