Biden’s Halt on Natural Gas Licenses Strands Would-Be Exporters in Limbo

Ruth Liao
·2 min read
26

(Bloomberg) -- The White House freeze on new natural gas-export licenses starkly divides terminal developers into two camps: those who can move forward with multi-billion-dollar investments and those stuck in limbo.

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More than a dozen companies poised to liquefy natural gas for shipment overseas were in the queue for federal permission to send the fuel to some of the world’s biggest buyers when the Energy Department called a halt to new approvals.

Those would-be exporters now face an unknown delay while bureaucrats analyze the potential impacts increased production of liquefied natural gas, or LNG, will affect the climate, economy and national security. At the same time, rival developers already in possession of the coveted licenses were left unscathed by Friday’s announcement.

Read More: Bloomberg Intelligence LNG Tracker Update: Biden’s Approval Freeze

If every one of the already-licensed projects moves forward and actually gets built, US production of LNG for export will almost double. Technically, the hold-up involves licenses to export to nations that don’t have US free-trade agreements.

Here’s a few of the biggest projects in suspended animation:

  • Energy Transfer LP was in the process of seeking an extension of the export license for a Louisiana project that otherwise will expire before construction can be completed

  • Closely-held Commonwealth LNG’s license request has been under review for four years. The company on Friday called the decision to halt approvals “especially punitive”

  • Venture Global LNG Inc.’s third project, known as CP2, hadn’t even begun the application process with the Energy Department when the freeze was announced

Here are already-licensed projects in position to move forward. To be clear, such developments are typically contingent upon filling up order books and lining up financing:

  • NextDecade Corp.’s expansion of its Rio Grande LNG project in South Texas

  • Cameron LNG’s addition of two new production lines, known as trains. The joint venture partners — TotalEnergies SE, Mitsubishi and Mitsui — have yet to make formal decisions to make the investment

  • Freeport LNG’s Train 4 expansion

  • Texas LNG’s proposed South Texas project led by developer Glenfarne Energy Transition LLC

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