A federal court has blocked President Joe Biden’s administration from pausing the approval of liquefied natural gas (LNG) export applications, dealing a setback to his climate agenda. U.S. District Judge James Cain in Lake Charles, Louisiana, ruled in favor of 16 Republican-led states, stating that the U.S. Department of Energy’s freeze on LNG export approvals was “completely without reason or logic.”
Cain, appointed by former President Donald Trump, said that the states were likely to succeed in arguing that the pause violated the Natural Gas Act and was arbitrary, capricious, and unconstitutional.
The court held that the Department of Energy’s actions exceeded its authority, noting the economic and environmental benefits of exporting natural gas highlighted in studies attached as exhibits. An Energy Department spokesperson expressed disagreement with the ruling and mentioned that the next steps are being evaluated.
The Biden administration initiated the pause in January this year to review the economic and environmental impacts of projects seeking approval to export LNG to Europe and Asia where the fuel is in high demand.
This move, supported by climate activists, could have delayed new plant approvals until after the November 5 presidential election. Republican-led states, including Texas, Louisiana, and Florida, sued in March, arguing that the policy would harm the economy and disrupt LNG supplies to Europe. They claimed the pause overstepped the DOE’s authority under the Natural Gas Act and jeopardized significant investments in export facilities.