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API Files for Rehearing on LNG Freeze

March 01, 2024 8:13 PM | Anonymous member (Administrator)

Friday, March 1, 2024

The American Petroleum Institute has filed an application for rehearing on the Department of Energy’s indefinite pause on new and pending liquefied natural gas (LNG) permit approvals for non-Free Trade Agreement countries.

API argues that the pause is unlawful, violating both the Natural Gas Act and the Administrative Procedure Act, and that it erodes America’s energy advantage by threatening U.S. jobs, national security and environmental progress. 

“At a time of geopolitical turmoil around the world, the Department of Energy's arbitrary LNG freeze is not only unlawful, it cedes America’s energy advantage to hostile nations while jeopardizing thousands of American jobs,” API Vice President of Natural Gas Markets Rob Jennings said. “U.S. LNG is a cornerstone of global energy security, and its benefits – which include bolstering the American economy, reducing global emissions and strengthening our national security – are well-established. There is bipartisan recognition that this move is political, and we will continue to take any steps necessary to resume American leadership on LNG.”

In the filing, API argues that DOE’s pause contradicts the clear mandate of the Natural Gas Act for DOE to issue LNG export permits to non-FTA countries absent a finding that it is not in the public interest. API also criticized the LNG export pause as “arbitrary and capricious,” highlighting DOE’s failure to provide a justification for changing its longstanding position. DOE implemented the pause without prior notice or the ability to comment as required by the Administrative Procedure Act. 

In the U.S., the natural gas and oil industry supports 10.8 million jobs and contributes $1.8 trillion to the U.S. economy. LNG exports are a critical part of the natural gas value chain, supporting jobs from production facilities in Pennsylvania and New Mexico to pipeline operations Ohio and West Virginia to export and liquefaction facilities in Texas and Louisiana. 

Read the 21-page filing here.

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