Defusing the LNG bomb

When the environmental history of the Biden administration is written, the Inflation Reduction Act will have pride of place – for all its compromises and flaws, it finally set serious federal money flowing toward the task of an energy transition, and defending it from Trumpian attack will be job one for green lobbyists for the next for years. (And not an impossible job in every case – the new factories built with IRA money have turned a lot of legislators, including in red states, into reluctant supporters).

But the second most useful thing the Biden administration did came less than a year ago – its January decision to pause new permits for liquefied natural gas (LNG) export terminals. This doesn’t sound to the untrained ear like such a big deal, but as readers of this newsletter know, it was: Had the industry continued to build at the pace it wanted, the climate damage from American LNG exports would soon have topped every single thing that happens in Europe. This is the biggest greenhouse gas bomb on planet Earth.

You could tell what a big deal it was by the way it angered Big Oil (and big banking and big shipping) – every story about the industry’s unprecedented support for Donald Trump’s election made it clear that this was the number one casus belli. That’s because – as American demand for natural gas begins to sag in the face of the renewables buildout – their main hope was to emulate the cigarette industry and seek new markets in Asia. But a combination of on-the-ground groups in the Gulf of Mexico and climate activists across the country stuck a potato in the tailpipe. The Biden administration promised a full report before the year was out about whether or not the exports were still in the public interest.

And yesterday, somewhat surprisingly, even before that report was released, the Federal Energy Regulatory Commission, FERC, slowed down the process some more. They issued a finding that the next terminal up for consideration, a mammoth facility called CP 2 destined for the Louisiana coast, needed to go through a new round of environmental review because of its potential effect on local air quality. As the experts at the Southern Environmental Law Center (SELC) explained:

The Federal Energy Regulatory Commission (FERC) issued an order setting aside its approval for Venture Global’s massive CP2 export facility in Cameron Parish, Louisiana. The order modifies and, in part, sets aside the commission’s previous authorization order to conduct a supplemental environmental impact analysis on the project’s cumulative air quality and emissions impacts. The order states that FERC will not authorize construction until the commission completes this process.

The vote for the new review is 4-0, and bipartisan. It could slow down approvals for the project till, perhaps, the third quarter of next year. And that’s good news, because the rationale for new LNG exports shrinks with each passing month, as the gap between the price of clean solar, wind, and battery power, and the price of fossil fuel, continues to grow.

The Biden administration should and could deny the permits outright, and here’s a petition urging them to do just that, and plans from Climate Defiance for demonstrations at the DOE next week. Most observers seem to think the denial is unlikely, especially after the FERC ruling gave them a plausible out on the most controversial of the projects. (And if they do deny them, the Trump administration might well be able to un-deny them, though at some point this all enters a valley of legal complication too thick for me to hack my way through.) Still – finish what you started. A year of investigation should have made clear that more LNG exports are not in the public interest, which means saying no.

At the very least what the Biden administration can and must do is tell the truth.The detailed report on the economics and science of LNG exports is apparently all written and just waiting for the DOE to release, but in some ways almost as important as the report itself will be the cover letter that comes with it. The report will be dense; the language that introduces it should be clear. Though it won’t necessarily stop the new guys from doing what they want, it’s time for President Joe Biden and Energy Secretary Jennifer Granholm to declare forthrightly that:

There are too many of these projects in too small a space along the Gulf, and it is intolerable for the people who live there. As James Hiatt, director of For a Better Bayou, said this morning: “Through the lenses of optical gas imaging, we’ve seen massive plumes of toxic emissions, undeniable proof that these projects poison the air we breathe. Modeling must use the latest data from the most local sources to fully capture the harm these facilities inflict on Cameron Parish. Anything less is a betrayal of our community. FERC must choose justice over profit and stop sacrificing people for polluters.” People like Hiatt – and especially the indefatigable Roishetta Ozane – have fought as if their lives were on the line, because they are. What heroes!

The US – the leading LNG exporter in the world – is producing far more gas already than the world needs. The industry’s rhetorical defense has focused on the need to bolster European supplies after Russian President Vladimir Putin’s invasion of Ukraine – but Europe is now awash in gas, and has used the war to dramatically convert to renewable energy. Every long-term indication is that the continent needs more, not less. Which is why new contracts for LNG exports are designed for Asia – where they will undercut a similar conversion to sun and wind.

In climate terms, exporting natural gas is at least as bad as exporting coal. Robert Howarth’s ground-breaking paper laying out the numerical proof was one of the keys in the battle to get the Biden pause; it’s since been published in a peer-reviewed journal. It documents the amount of heat-trapping methane that pours into the air at every point in this process. There is no possible way to square the expansion of LNG with reducing climate pollution. That won’t matter to Trump, of course, since he doesn’t believe in climate change, but it is a robust truth that needs to be stated clearly and publicly.

In economic terms, this harms the American consumers who haven’t yet managed to install a heat pump and who are still dependent on natural gas. If shipload after shipload is sent overseas, every analysis has found, the price will go up for those Americans.

Excerpted: ‘What the Biden Admin Can Still Do to Defuse the LNG Bomb Before Trump Grabs the Trigger’.

Courtesy: Commondreams.org