The Story
On January 26, 2024, the Biden Administration announced a startling shift in American energy policy via press release: a complete halt to all new approvals of Liquid Natural Gas (LNG) exports to countries not covered by free trade agreements. Termed the “LNG Export Ban,” this decision marks a dramatic reversal from the Department of Energy’s (DOE) stance just six months earlier, which had just reaffirmed the continuation of LNG export approvals.
This sudden policy change not only destabilizes a critical component of the U.S. economy but also raises significant legal concerns. It contravenes the Natural Gas Act, which mandates that the DOE should approve LNG export applications unless they are found inconsistent with the public interest—a determination that is not being made if all applications are being rejected. Furthermore, the imposition of the ban without the requisite notice and opportunity for public comment violates the procedures mandated by the Administrative Procedure Act (APA), exhibiting federal administrative overreach and a disregard for the constitutional separation of powers.
The Oil & Gas Workers Association, represented by the Pelican Institute and the Liberty Justice Center, has taken a bold stand by filing a lawsuit against the Biden Administration’s ban. The impact of this ban extends beyond mere regulatory compliance issues; it strikes at the heart of the economic livelihood of thousands of Americans and the operational stability of an entire industry. This legal challenge seeks to reverse the ban and restore lawful, reasoned policy making that considers projects on a case-by-case basis and preserves the interests and the security of American energy workers and consumers. As we move forward with this lawsuit, it is a fight not just for the future of the LNG industry, but for the integrity of our constitutional framework.
The Latest
On July 1, 2024, the court entered an order enjoining the LNG export ban in a companion case brought by several states.
The Timeline
Complaint. On May 16, 2024, Pelican Institute and Liberty Justice Center filed a Complaint in the United States District Court for the Western District of Louisiana.
Ruling on Preliminary Injunction. On July 1, 2024, the court entered an order enjoining the LNG export ban in a companion case brought by several states.