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Jennifer Granholm said a new analysis showed that the continued pace of exports was “neither sustainable nor advisable.”
Dec. 16, 2024, 5:32 p.m. ET
If the United States were to continue exporting liquefied natural gas in the way that has made it the world’s biggest gas supplier, it would drive up costs for American consumers and businesses, pollute struggling communities and increase global greenhouse gas emissions, according to a letter written by Energy Secretary Jennifer Granholm that was obtained by The Times.
The letter is expected to accompany a study of the economic, national security and climate effects of approving new natural gas export terminals to be issued within days by the Energy Department. President Biden ordered the analysis in January, when he paused the process of issuing permits for more than a dozen new gas export facilities, including what would be the largest terminal ever built in the United States. The pause was praised by environmentalists but triggered outrage from the oil and gas industry.
In the letter, Ms. Granholm said that the analysis showed that the continued pace of gas exports was “neither sustainable nor advisable.”
However, the report does not provide grounds for the federal government to issue blanket denials of the final permits for future natural gas terminals, said three senior administration officials familiar with the report, who spoke on the condition of anonymity because they were not authorized to discuss its findings. Under federal law, two agencies are responsible for approving L.N.G. projects. The Federal Energy Regulatory Commission approves location and construction, while the Energy Department must determine if exports are “in the public interest.” To date, the Energy Department has never denied any company seeking such a permit.
The conclusions of the report could provide a legal argument for those seeking to sue to stop permits for export terminals in the future, the senior administration officials said.
In her letter, Ms. Granholm wrote that future administrations must scrutinize each proposed project and consider the economic and environmental issues raised by the analyses. The report may compel companies seeking permits to more thoroughly demonstrate that they have mitigated the greenhouse pollution associated with extracting and transporting the gas, and also force future administrations to show how they have reconciled decisions to approve new terminals with the report’s findings.
