Fossil fuel trade group files for rehearing on Biden’s natural gas export pause

The top U.S. fossil fuel lobbying group has filed a petition challenging the Biden administration’s pause on new liquefied natural gas (LNG) export approvals.

In the petition, filed Monday, the American Petroleum Institute (API) and six other trade groups called for a rehearing on the pause. They argued the move is “arbitrary and capricious” and goes against the federal statute governing administrative agencies. The filing is not a lawsuit, but could be the first step toward a legal challenge that makes the same argument.

“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 in a statement.

“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.”

The Biden administration announced the pause after a substantial increase in U.S. exports to Europe to replace Russian gas imports after the Russian invasion of Ukraine. Existing exports are not affected and the U.S. Energy Information Administration projects that U.S. LNG export capacity could still double by 2028.

The administration’s hold, announced in January, will pause all new LNG export licenses to countries without free-trade agreements with the U.S. pending an Energy Department review of how LNG shipping affects climate change. The Biden administration has not specified how long the pause will last.

In addition to backlash from Republican lawmakers, the pause has also been criticized by some congressional Democrats, including Senate Energy Chair Joe Manchin (D-W.V.), who called it “reckless” and chaired a hearing on the matter earlier this month.

Sen. Michael Bennet (D-Colo.) has also expressed disagreement, as well as Sens. Bob Casey and John Fetterman of Pennsylvania, a major natural gas producer where both Casey and Biden will be on the ballot in November.

The Hill has reached out to the Energy Department for comment.

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