WELL, YES: Increasing LNG Permits Is Critical to Sanctioning Russia.
Last month, the Biden administration took aim at its own domestic energy export capabilities by halting all permits for new LNG projects—effectively banning future exports. This came in sharp contrast to the administration’s recent sanctions on shipments of Russian gas from the Arctic LNG 2 terminal. While our allies have already pledged to reduce their Russian gas dependency, this shift hinged on the United States’ ability to promptly supply their alternative.
Japan, the world’s leading LNG importer, which was already in a precarious position due to its reliance on anticipated supplies from Russia’s sanctioned Arctic LNG 2, is now facing an all-out energy crisis. Top Japanese power generator JERA said they expect the suspension “could affect the LNG security not only for us, but also for Japan and the world.”
Our allies have cause for concern over President Biden’s LNG moratorium, especially at a time when exporters want to add fifty percent capacity by 2026 to meet global demand. The Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC) under President Biden have been notoriously slow in processing permits for LNG exporters—setting the stage for this moratorium. The current eleven-month average processing time under Biden contrasts sharply with the seven-week time frame under the Trump administration and even the six-month duration under Obama.
The Biden Cabal couldn’t figure out how to slam the brakes on American domestic oil production but they’ve certainly put the squeeze on LNG.