CANNONSBURG, Pennsylvania — A Call for Action on LNG Permits
On Tuesday, Ryan Lance, the CEO of ConocoPhillips, urged the Biden-Harris administration to terminate what he described as an “irrational pause” on liquefied natural gas (LNG) export permits. He emphasized the need for the United States to reclaim its leadership role in the global LNG market.
In January, the Biden-Harris administration imposed a moratorium on issuing permits for exporting U.S. LNG. This decision was made to conduct a thorough evaluation of how this industry impacts both environmental and economic factors. As a result, approvals for all U.S. LNG projects were halted.
Speaking at the Gastech conference held in Houston, Lance highlighted that reforming permitting processes and enhancing infrastructure are critical needs for advancing this sector.
U.S. Energy Secretary Jennifer Granholm had previously assured that this pause would be resolved “within months.” However, nine months later, uncertainty looms large over future operations within the energy sector—a concern that extends beyond immediate timelines since companies typically strategize with long-term forecasts spanning ten or even twenty years.
Recent reports from Reuters indicated that significant buyers of U.S. LNG have expressed concerns about sourcing cargoes from America due to this export permit freeze affecting non-free trade agreement nations.
Officials from Taiwan’s CPC Corporation and Germany’s SEFE—both key players in trading LNG cargoes—emphasized reliability when discussing how these developments might affect Asian markets amid uncertainties surrounding U.S. exports.
Shifting Supply Chains: The Russian Alternative
As countries reassess their options for procuring LNG moving forward, many are looking towards Russia as an alternative supplier.
Jane Liao, who leads CPC Corporation’s natural gas division in Taiwan, remarked during last week’s APPEC Conference that their stance towards American suppliers has become increasingly cautious; they now favor more dependable sources instead.
Liao noted that ongoing purchases by China and India of Russian LNG will help maintain market stability while ensuring continued transactions with Russia itself—a clear indication of shifting alliances influenced by current geopolitical dynamics.
This situation is precisely why Lance referred to the moratorium as an “irrational pause” on permitting exports; it poses significant risks not only economically but also regarding national security interests down the line.
Long-Term Implications and Economic Stakes
The ramifications could be severe within four to five years if these trends continue unchecked; however, immediate national security concerns are already apparent today.
Natural gas extracted from Pennsylvania’s Marcellus Shale plays a vital role not just economically but also geopolitically—it serves as a counterbalance against Russian aggression in Ukraine by providing energy resources globally through liquefaction and shipping processes.
It remains puzzling why Vice President Kamala Harris has yet to lift this moratorium despite her recent support for hydraulic fracturing practices—a topic she should address when discussing both Pennsylvania’s economic landscape and broader national security issues during her campaign efforts.
Graduated from University of Denver, Residing in Dallas, Texas. Political observer and a Conservative. Follow on Twitter for more.
