US lawmakers hold first of two hearings on Biden's LNG pause

[February 06, 2024]  By Timothy Gardner
 
WASHINGTON (Reuters) - As Republican and some Democratic U.S. lawmakers slam President Joe Biden's pause on approvals of exports of liquefied natural gas (LNG) a House subcommittee will hold a hearing on the issue on Tuesday, the first of two in Congress this week.    

U.S. President Joe Biden speaks about his administration's actions to battle climate change and protect the environment during a visit to Lucy Evans Baylands Nature Interpretive Center and Preserve, in Palo Alto, California, U.S., June 19, 2023. REUTERS/Kevin Lamarque/File Photo

The House Energy, Climate and Grid Security Subcommittee hearing at 10:00 ET will feature Toby Rice, the CEO of EQT the largest U.S. natural gas producer and Gillian Gianetti, a lawyer at the Natural Resources Defense Council non-profit that applauded Biden's move.

Biden, a Democrat, paused approvals for new exports from LNG projects indefinitely so his administration can take a "hard look" at the environmental and economic impacts of increased shipments.

Environmentalists and youth groups, an important part of Biden's base, had pressured the administration to slow approvals of fossil fuel projects due to climate concerns. A wide swath of domestic businesses ranging from chemicals, steel, food and agriculture, also oppose unrestricted exports of U.S. gas, saying it could raise fuel prices and make domestic supplies less reliable.

U.S. Representative Cathy McMorris Rodgers, a Republican and chair of the House Energy and Commerce Committee, told Bloomberg last week that the Republican-controlled House would vote this month on a bill to reverse the pause. If such a measure passed the House, it could struggle in the Senate, controlled by Democrats.

The U.S. exported more LNG than any other country last year and is expected to double shipments by the end of the decade with fully approved projects.

Some lawmakers claim the pause will hurt energy security of U.S. partners and allies. A letter from 150 House Republicans on Sunday to Biden said Europeans were "desperately seeking American energy to counter Russia's weaponization of its natural gas exports."

Europe will have enough gas supply for the 10 years and beyond despite the pause, EU energy officials and analysts said, dismissing industry's warnings. The pause comes with exceptions for supply emergencies.

The Senate Energy Committee, chaired by Senator Joe Manchin, a conservative Democrat from gas-producing West Virginia, has hearing on Thursday, with Deputy U.S. Energy Secretary David Turk. Manchin is not the only Democratic senator who has raised concerns about the pause. Senators Bob Casey and John Fetterman of gas-producing Pennsylvania have said if the decision puts jobs at risk they will push the administration to reverse the pause.

(Reporting by Timothy Gardner; Editing by David Gregorio)

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