In a move that could impact the fast-growing natural gas export industry, the Biden administration has initiated a review of new liquefied natural gas (LNG) export terminals, which is expected to last up to 15 months. The review aims to assess the environmental and climate impacts of the industry and consider the effects on local communities. The announcement of the review is anticipated to be made by the White House on Friday, though it may be delayed until early next week.

The review specifically puts a halt to the development of CP2, a significant export project planned for coastal Louisiana by Venture Global LNG. Environmental groups have called on the administration to reject the project, citing concerns that it would contribute to climate change and perpetuate the reliance on fossil fuels.

The United States has become the largest producer of natural gas globally, with exports of LNG playing a crucial role in reducing Europe's dependence on Russian supplies following the Ukrainian conflict. However, the decision to delay the approval of new LNG export permits until after the November election is seen as an attempt to appease environmental groups and address climate change concerns as Biden begins his reelection campaign.

Despite heavy lobbying from the oil and gas industry against the review, White House officials are confident that existing LNG export plants, which currently ship 12 billion cubic feet of gas per day, will not be interrupted. Additionally, the 10 projects already under construction, holding DOE export permits, will continue as planned, potentially doubling the amount of U.S. LNG going to market by 2028.

The review will primarily focus on new applications for LNG export permits. It aims to update the Department of Energy's evaluation process, taking into account climate change, environmental justice, and domestic economic impacts when considering applications to export LNG to countries that do not have free trade agreements with the United States.

Key figures involved in crafting the review's language include Energy Secretary Jennifer Granholm, White House clean energy advisor John Podesta, climate advisor Ali Zaidi, and White House energy security advisor Amos Hochstein.

The launch of this review has already caused an uproar among industry players, with Venture Global LNG expressing concerns of the potential economic impact on the global energy market. However, the Biden administration remains steadfast in its commitment to addressing climate change and reassures that the moratorium on new export permits will not hamper the well-supplied global market.

As the review gets underway, attention will be focused on how the Biden administration strikes a balance between environmental concerns, energy security, and maintaining alliances with international partners.