PA Environment Digest Blog: Federal Judge Halts Biden’s Pause On New LNG Gas Export Facility Permits; EQT, PA Marcellus Shale Gas Coalition Plan To Ship PA Gas To China To Support Its Economy

On July 1, the Associated Press reported a federal judge in Louisiana granted a preliminary injunction that prevents the Biden administration from delaying permits for new LNG gas export projects, while a legal challenge by Republican states plays out in federal court.

The AP said it was unlikely, however, that any of the projects would be on a fast track for consideration as the U.S. Department of Energy said late Monday that it disagreed with the court’s ruling and was evaluating its next steps.

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Little Impact From Pause

The pause put on consideration of new LNG gas export facility permits January 26, 2024 in fact had little impact on the growth of US export capacity.

Projects already approved and under construction are expected to double US LNG gas export capacity anyway. Read more here.

The factors delaying these projects are not related to the pause, but by rising US labor costs [Read more here] and, in the case of the largest LNG gas export facilities under construction, the bankruptcy of its contractor [Read more here]

PA Has “Duty” To Provide Gas To China

Pittsburgh-based EQT Corporation and the Marcellus Shale Gas Coalition here in Pennsylvania have repeated their support for expanding LNG as export capacity.

More specifically, EQT in November 2023 relaunched its "Unleash” LNG Exports initiative the US "has a duty to provide” natural gas to countries like China because they don't have natural gas of their own. Read more here.

In April, the Marcellus Shale Gas Coalition repeated the position saying we have a “duty” to provide PA-produced gas to China, our economic and military competitor. Read more here.

The Pennsylvania Manufacturers Association, which regularly complains about unfair competition from Chinese manufacturers, supports expanding LNG gas export capacity, including here in Pennsylvania.

China is also dramatically expanding its efforts to find domestic sources of gas.

This week China set up a new state organization to expand drilling for deep, unconventional sources of oil and gas. [Read more here]

Recall that China is still the fourth largest producer of natural gas in the world, more than Canada, Qatar, Australia, Norway, Saudi Arabia and Algeria. [Read more here]

Other Gas Industry Observers

Other industry observers, like Marcellus Drilling News, have looked at the bigger picture-- the impact of selling LNG gas on the fundamental interests of the United States-- “Selling oil and natural gas to China?” “It simply should not happen, period.” Read more here.

Federal Bill To Ban LNG Exports To Certain Countries

The concerns over who the US exports LNG gas to resulted in Ohio US Senator Sherrod Brown and Oregon US Senator Jeff Merkley announcing the introduction of the Protecting American Households from Rising Energy Costs Act that would ban the export of crude oil or liquefied natural gas (LNG) to our biggest adversaries: China, Russia, Iran, and North Korea. Read more here.

LNG Exports Mean Higher PA Prices

Natural gas prices are now set by international markets and LNG gas exports tie Pennsylvania and the US to those markets very tightly. Read more here.

The war in Ukraine clearly demonstrated this point by causing natural gas prices to increase up to 154% in Pennsylvania, according to the Public Utility Commission.

The Marcellus Shale Coalition said the 2022 natural gas price spike cost Pennsylvania natural gas consumers over $1.8 billion. They took credit for the price decrease, but said nothing about the price spikes before that. Read more here.

Opposition LNG Facilities In PA

There is significant opposition to LNG gas export facilities in Pennsylvania.

In August of 2023, 150+ residents of Chester, Delaware County outlined their concerns about adding another industrial facility in their community that is already home to many others at a hearing of the PA House Philadelphia LNG Natural Gas Export Task Force chaired by Rep. Martina White (R-Philadelphia). Read more here.

The Task Force issued its report in November of 2023 outing the “best and safest” way to increase the export of Pennsylvania’s natural gas overseas.

The report echoes EQT’s “duty” to supply gas to Chinaby pointing out what a great market opportunity China represents.

Worth A Closer Look

With the impact of LNG gas exports on the prices Pennsylvania consumers pay for natural gas and electricity, the way exports could be used by countries like China to cause a further loss of jobs in the Commonwealth and the impacts these facilities have on communities, the LNG gas export issue is worth a much more careful look than Pennsylvania policymakers have given it so far.

Pennsylvania is the second largest producer of natural gas in the US and we should act like it and have an impact on these policy issues.

Resource Links - LNG Gas Export In PA:

-- 150+ Residents Of Chester Opposed To An LNG Natural Gas Export Facility Proposed In Their Community Let Their Feelings Be Known To The House Philadelphia LNG Export Task Force [PaEN]

-- Philadelphia LNG Export Task Force Issues Report On The Best Ways To Increase Exports Of PA's Natural Gas; Minority Report Rebuts Need For LNG Facility, Outlines Impacts [PaEN]

-- PA Utility Law Project March 15 Webinar On Impacts Of LNG Gas Exports On Energy Costs For Pennsylvania Families; LNG Export Capacity To Double, Even With Permit Pause [PaEN]

-- Marcellus Shale Gas Coalition Official Joins Pittsburgh-based EQT In Saying We Have A 'Duty’ To Provide LNG Gas To China, Our Economic, Military Competitor [PaEN]

-- US Senators Introduce Bill To Ban US LNG Gas Sales To Any Entity Under The Control Of Communist China To Protect US Jobs; Americans From Price Spikes; EQT Says We Have A ‘Duty’ To Provide LNG Gas To China; Where Do AMERICAN Interests Lie? [PaEN]

-- Marcellus Drilling News: ‘Selling Oil And Natural Gas To China?’ ‘It Simply Should Not Happen, Period’ [PaEN]

-- Stars and Stripes Guest Essay: Pause On Permits For New LNG Gas Export Facilities Right Move For National Security - Rivals Like China Are Using US LNG To Build Influence - By Steve Anderson, US Army Brigadier General - Retired [PaEN]

-- NRDC: U.S. Dept. Of Transportation Denies Special Permit For Shipping LNG Natural Gas By Rail From A Proposed Bradford County LNG Plant; Shipping By Truck Still Allowed [PaEN]

-- Marcellus Drilling News: New Fortress Energy Reapplying For Wyalusing LNG Natural Gas Plant Permits In Bradford County

-- Scranton Times Editorial: Local Leaders, DOT Must Stop Plant In Wyalusing, Bradford County From Shipping LNG Natural Gas By Rail Or Truck Or Both To Philadelphia [PaEN]