Biden Administration Warns of Risks Associated with Increased LNG Exports

The Energy Department's recent study cautions the U.S. government about the implications of continuing to expand liquefied natural gas exports, highlighting potential hikes in energy costs and environmental pollution which could complicate President-elect Donald Trump’s plans for new export terminals.

The Biden administration released a significant study on December 17, 2024, that highlights the economic and environmental challenges associated with increasing liquefied natural gas (LNG) exports. This analysis comes at a pivotal moment as President-elect Donald J. Trump prepares to take office and is expected to endorse new gas export facilities.

The Energy Department’s findings suggest that continued LNG exports could elevate energy costs for American consumers, as they make the domestic market more susceptible to fluctuations in international pricing. Additionally, the establishment of new export terminals could exacerbate pollution in coastal communities and contribute to higher global greenhouse gas emissions.

While the study avoided outright declaring that additional LNG sales are detrimental to U.S. interests, it acknowledged that increased exports have brought certain economic advantages, particularly enhancing energy security for U.S. allies in Europe. Nonetheless, environmental advocates are likely to leverage the report for future legal challenges against new export projects.

Energy Secretary Jennifer Granholm emphasized in a letter accompanying the report that the outgoing administration hopes the incoming leadership will weigh these findings carefully. Granholm stated, “The final decision, of course, is now in the hands of the next administration...but we hope that they’ll take these facts into account to determine whether additional LNG exports are truly in the best interest of the American people and economy."

Her remarks indicated a more forceful stance on the risks of expanding LNG exports, arguing that a business-as-usual approach is "neither sustainable nor advisable." As the nation prepares for a transition in leadership, the discussions surrounding LNG exports and their implications for both the economy and the environment are set to become increasingly prominent in policy debates.