Sixteen states including Texas and Louisiana filed a lawsuit this week to challenge the Biden administration’s suspension of approving new licenses to export liquefied natural gas, arguing the federal government lacks proper authority to unilaterally deny the permits, even on a temporary basis.
The lawsuit was filed in federal court in Louisiana by the group of Republican-led states that claim the U.S. Department of Energy’s pause will harm the U.S. economy and undermine efforts to supply allies in Europe with steady supplies of LNG.
“The ban will drive billions of dollars in investment away from Texas, hinder our ability to maximize revenue for public schools, force Texas producers to flare excess natural gas instead of taking it to market, and annihilate critical jobs,” Texas Attorney General Ken Paxton wrote.
President Biden’s ban comes “in the midst of an election year, and after a sustained pressure campaign from billionaire conglomerates, celebrities, ‘influencers’ and banks,” the lawsuit says.
The Biden administration announced in January that it was pausing new licenses to export LNG while it studies how the projects affect climate change, as well as the economic and environmental impacts.
ETFs: (NYSEARCA:UNG), (BOIL), (KOLD), (UNL), (FCG)
Front-month Nymex natural gas (NG1:COM) for April delivery finished +0.2% this past week to $1.659/MMBtu, down 34% YTD.
