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The Biden administration sent shockwaves around the world when it announced a moratorium on all future liquefied natural gas (LNG) export projects for the indefinite future. 

The Biden administration sent shockwaves around the world when it announced a moratorium on all future liquefied natural gas (LNG) export projects for the indefinite future.  (Department of Energy)

The Biden administration sent shockwaves around the world when it announced a moratorium on all future liquefied natural gas (LNG) export projects for the indefinite future. Our allies have long depended on the U.S. for clean energy supplies, but this became especially pertinent following Russia’s invasion of Ukraine. Last year, the U.S. became the world’s leading exporter of LNG, so it makes little sense to withhold such a valuable and needed resource from our allies. Ultimately, the moratorium is bad policy and is out of step with our interests and those of our friends abroad. President Joe Biden would do well to reexamine this decision.

While the moratorium announcement didn’t immediately raise eyebrows across Washington, lawmakers are now beginning to realize what the administration’s decision may mean for our global status. In fact, in recent weeks the House Committee on Energy and Commerce held a hearing on “Politics Over People: How Biden’s LNG Export Ban Threatens America’s Energy and Economic Security.” The hearing covered the political backing of the latest attack on energy production and offered an opportunity to explore the many benefits of American LNG at home and abroad. As this issue continues to unfold, lawmakers are eager to understand the facts and consequences of hitting the brakes on American LNG exports.

One clear consequence is the abandonment of our allies abroad who have depended on American LNG to break Russia’s grip on energy production. Europe was the primary destination for U.S. LNG in 2022, accounting for nearly two-thirds of LNG exports. Without it, our European allies will once again depend on Russian President Vladimir Putin’s energy supplies, a serious and consequential step back. In fact, several Russian media outlets have gloated that Biden’s moratorium will force Germany and others back to Russia for natural gas.

The most concerning effect is the impact on our national security. With a new major Russian LNG export facility scheduled to come online this year and Iran, the world’s third largest natural-gas producer, reviving construction on its own LNG export facility, the moratorium cannot be viewed in a vacuum. Europe and Asia will have to import gas from foreign adversaries to meet their growing demand, likely looking to Russia and China. They’ll also look to Qatar, which likely will assume the mantle of top LNG exporter, especially as new projects are completed.

Biden’s LNG moratorium is as inconsistent as it is dangerous. In March 2022, the administration was set on providing energy relief to Europe. As of February 2023, it continued to advocate for LNG’s benefits, with Energy Secretary Jennifer Granholm stating that “our liquefied natural gas exports have been a significant help to our allies.” Less than a year later, the administration has completely flipped its position, putting international security on the line.

Fortunately, the LNG moratorium is drawing serious fire from the Hill. A chorus of congressional Democrats have joined Republicans and the energy industry in sounding the alarm on Biden’s decision. They stated that it “actually undermines his climate agenda, jeopardizes national security, empowers Russia and Iran, and creates a schism with allies who depend on this clean energy from the U.S. to fuel their countries.”

Placing a moratorium on American LNG exports is no small matter. It will have long-lasting consequences for our geopolitical standing and endanger climate change goals here and abroad. The move will also upset a global energy market that is just now settling, threatening to raise prices here at home and send our allies scrambling to Russia (and others) to satisfy their energy needs. An LNG moratorium is a losing move for the U.S., and Biden, with Congress’ support, must quickly reverse course.

Tom Magness, a retired U.S. Army colonel, served as a commander in the U.S. Army Corps of Engineers. He is the founder of the Eagle Leadership Group.

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