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Sixteen states, including Texas and Louisiana, filed a lawsuit this week challenging the Biden administration’s suspension of approval of new liquefied natural gas export licenses, arguing that the federal government lacks the authority adequate to unilaterally deny permits, even on a temporary basis. basic.
The lawsuit was filed in federal court in Louisiana by a group of Republican-led states who argue that the U.S. Department of Energy’s pause will hurt the U.S. economy and undermine efforts to provide allies in Europe with steady supplies of LNG.
“The ban will drive billions of dollars of investment away from Texas, hinder our ability to maximize revenue for public schools, force Texas producers to burn excess natural gas instead of bringing it to market, and wipe out critical jobs,” said Texas Attorney General Ken Paxton. he has written.
President Biden’s ban comes “in the midst of an election year and after a sustained pressure campaign from billionaire conglomerates, celebrities, ‘influencers’ and banks,” the lawsuit states.
The Biden administration announced in January that it would suspend new licenses to export LNG while it studies how the projects affect climate change, as well as economic and environmental impacts.
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Delivery of Nymex (NG1:COM) natural gas for the month of April has ended +0.2% last week at $1.659/MMBtu, down 34% year to date.