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Biden’s LNG Study to Stop Short of Halting New Exports

BONNY ISLAND, NIGER DELTA, NIGERIA - OCTOBER 12: A ship loads liquefied natural gas from the Nigerian Liquefied Natural Gas plant October 12, 2004 on Bonny Island, Nigeria. A member of OPEC, Nigeria is the world's seventh largest crude oil exporter, and the fifth largest supplier to the U.S. Royal Dutch/Shell leads Exxon Mobil, Chevron Texaco, Total Fin Elf and Agip in production through a series of joint ventures with the government. Despite producing 2.26 million barrels of oil a day, 60 percent of Nigerians live below the poverty line. (Photo by Jacob Silberberg/Getty Images) (Jacob Silberberg/Photographer: Jacob Silberberg/G)

(Bloomberg) -- A highly anticipated study of liquefied natural gas exports by the Biden administration is expected to stop short of saying the approval of more shipments isn’t in the public interest, according to people familiar with the matter.  

The study, under way since January, is set to be released as soon as Tuesday, according to the people, who asked not be named because they weren’t authorized to discuss the matter publicly.

The administration has examined the climate, economic and national security implications of increasing US exports of the fuel. The study is also expected to include analysis of the potential for more shipments to raise US natural gas prices, as well as the implications of declining demand in Europe, two of the people said.

The Energy Department didn’t immediately respond to a request for comment. 

Biden launched the review while imposing a halt on new LNG export licenses, which followed vehement environmental opposition to planned capacity addtions.

President-Elect Donald Trump has vowed to end the moratorium on new export terminals on his first day back in the White House. However, should the study find that additional shipments cause more harm than good, or if it adds new conditions to their approval, the new administration’s green-lighting of new projects could be challenged in court.

Export projects proposed by Commonwealth LNG, Energy Transfer LP and Venture Global LNG Inc. have been put in limbo by the Energy Department’s review. The study’s release was reported on earlier by Reuters.

--With assistance from Ruth Liao.

©2024 Bloomberg L.P.