A federal judge has blocked the Biden administration's ban on new exports of liquefied natural gas (LNG) following a legal challenge from a coalition of states.
The preliminary injunction prevents the ban from taking effect while the case is ongoing.
According to Fox Business, a ruling from the U.S. District Court for the Western District of Louisiana, Lake Charles Division, halted the Biden administration's ban on new LNG exports.
The court granted a preliminary injunction requested by a coalition of more than a dozen states, preventing the ban on new LNG export projects from taking effect during the ongoing legal proceedings.
The injunction prevents the ban on new LNG export projects from taking effect during the legal proceedings. The coalition argued that the ban threatened jobs and tax revenue in energy-producing states. On January 26, the Biden administration halted all new approvals of LNG exports to non-Free Trade Agreement countries.
Previously-approved LNG export projects were unaffected by the ban. The White House and Energy Department stated that the pause was intended to allow for a rigorous environmental review. The review aimed to assess the impact of new LNG projects on carbon emissions and was expected to take over a year.
Opponents of the ban argued it contradicted the Natural Gas Act and decades of Energy Department policies. The court found that states showed "evidence of harm" due to the ban, particularly in Louisiana, Texas, and West Virginia. In 2023, the U.S. led the world in LNG exports with over 86 million metric tons exported.
Europe and Asia are the primary destinations for U.S. LNG exports. In February, 22 states sent a letter to the Biden administration urging an end to the pause on LNG exports.
West Virginia Attorney General Patrick Morrisey, a vocal critic of the ban, stated:
This is a big win for the country's energy industry and the millions of jobs it supports against the attacks from the Biden administration to further its radical climate change agenda at the expense of our economy.
Morrisey also emphasized the Energy Department's lack of authority to impose such a ban, arguing, "This administration's Energy Department has no such authority to justify this ban—authority on matters like this lies with Congress and Congress alone." However, the U.S. Department of Energy disagreed with the court's decision.
A spokesperson stated: "The U.S. Department of Energy disagrees with today's ruling. The Department continues to review the court's order and evaluate next steps."
The legal battle is likely to continue as both sides prepare for further court proceedings. The outcome could have significant implications for the U.S. energy sector and the administration's climate policies.
The federal judge's ruling temporarily halts the Biden administration's ban on new LNG exports, a decision that followed strong opposition from a coalition of states citing economic concerns. The preliminary injunction maintains the status quo while legal challenges proceed. The administration's pause aimed to assess environmental impacts, but critics argue it overstepped legal boundaries and jeopardized state economies.
