In a move aimed at addressing environmental concerns and fulfilling campaign promises, the Biden administration has decided to delay the consideration of new natural gas export terminals in the United States. Despite the soaring gas shipments to Europe and Asia following Russia's invasion of Ukraine, President Biden's decision aligns with the growing chorus of environmental activists who fear the increased exports could exacerbate planet-warming emissions.

President Biden, in a statement issued on Friday, emphasized his administration's commitment to tackling the climate crisis and vowed not to bow down to special interests. "While MAGA Republicans willfully deny the urgency of the climate crisis, condemning the American people to a dangerous future, my administration will not be complacent. We will heed the calls of young people and frontline communities who are demanding action," Biden stated.

The White House cited the inadequacy of current economic and environmental analyses used by the Energy Department to evaluate LNG projects. The existing evaluations fail to account for potential cost hikes for American consumers and manufacturers, as well as the impact of greenhouse gas emissions. The administration believes these factors need to be thoroughly scrutinized before any new projects are considered.

Industry groups have strongly criticized this pause, claiming it plays into Russia's hands. Environmentalists, on the other hand, are hailing the decision as a victory. They have been pushing for measures to counterbalance Biden's approval of the massive Willow oil project in Alaska last year. Notably, environmental activist Bill McKibben praised the decision, acknowledging the potential backlash from former President Donald Trump.

Energy Secretary Jennifer Granholm assured reporters that the pause will not immediately affect already authorized export projects. Furthermore, she emphasized that U.S. gas supplies to Europe and Asia would remain unaffected in the short term, as several LNG terminals are currently operational, with more expected to come online in the upcoming years. Granholm also stated that exceptions could be made for national security needs.

The length of the permitting pause remains undisclosed, but officials indicate that a comprehensive study on the environmental, economic, and national security impacts of proposed LNG projects will take several months. This, combined with a public comment period, suggests that decisions on pending LNG projects may be delayed until after the 2024 presidential election.

U.S. liquefied natural gas exports, which began less than a decade ago, have seen tremendous growth in recent years, making the country the world's largest gas exporter. The surge in exports was particularly notable following Russia's invasion of Ukraine in February 2022. President Biden and Secretary Granholm have praised the delivery of U.S. gas to Europe and Asia as a crucial geopolitical weapon against Russian President Vladimir Putin.

The American Petroleum Institute, the leading lobbying group for the oil and gas industry, criticized the Biden administration's decision, viewing it as a win for Russia at the expense of American allies, U.S. jobs, and global climate progress. According to the API, U.S. LNG exports have been pivotal in stabilizing global energy markets, supporting thousands of American jobs, and transitioning countries away from coal toward cleaner fuels.

As this pause on new natural gas export terminals takes effect, the Biden administration faces a delicate balancing act between environmental concerns, national security, and economic considerations. The decision has divided industry groups and environmental activists while setting the stage for a potential showdown in the future.