(Source: Texas LNG)
With a decision from a federal judge, exports of liquified natural gas are allowed once again, promoting American energy independence and allowing Texas a seat at the front of the table.
In a landmark decision that champions energy independence and economic stability, a U.S. federal court has overturned the Biden administration’s indefinite ban on liquified natural gas (LNG) export permits. Judge James Cain of the U.S. District Court for the Western District of Louisiana said in his order that the decision is “effective immediately.”
The judge also stated that the policy was implemented “completely without reason or logic.” This ruling means that Texas natural gas can continue to reach the market, preserving jobs and sustaining the state’s energy industry that operates as its heartbeat.
This ruling, celebrated by the Texas Oil & Gas Association (TXOGA), marks a significant win for the energy sector and the broader economy. TXOGA President Todd Staples praised the court’s decision, stating that ending the LNG export permit approval halt “achieves the right result.”
Staples emphasized that “U.S. natural gas has ushered in a new era of energy security by providing for needs here at home and to allies around the globe…Every family has benefited from a robust natural gas sector, and LNG exports play an ever-growing role in a stronger Texas and America.”
Since the Biden Administration announced the LNG export permit pause in January, TXOGA has been vocal in its opposition. The Association joined forces with other trade groups, sending letters to the U.S. Department of Energy, publishing statements and op-eds, and testifying before the Texas House Select Committee on Protecting Texas LNG Exports. TXOGA also released documents showing that U.S. LNG exports have not significantly impacted domestic natural gas prices but instead drove gains in production.
Texas, along with Louisiana and fourteen other states, filed a lawsuit in March arguing that the LNG export ban was unconstitutional. Texas highlighted the critical economic impacts this policy would have on the state, the nation’s leading producer of crude oil and natural gas.
“This ruling means Biden’s illegal ban does not prevent Texas natural gas from reaching market while the lawsuit continues [and] producers can take their natural gas to market instead of flaring it. This will protect Texas jobs and keep our critical energy industry running.”
The ban’s reversal underscores the significant role that LNG exports play in the global energy market, particularly as European countries seek alternatives to Russian energy. The U.S., led by Texas, has stepped up as the world’s leading producer and exporter of natural gas, a status recognized even by senior advisors within the Biden administration. John Podesta, a senior advisor to the president, at one point acknowledged the importance of American LNG exports, especially in light of the geopolitical landscape following Russia’s invasion of Ukraine.
In stark contrast to the Biden Administration’s stance, Texas continues to invest in its energy future. The state’s government, supported by its legislature and voters, recently created a $5 billion Texas Energy Fund to advance natural gas development and infrastructure. This commitment reflects Texas’ dedication to maintaining its leadership in the energy sector while ensuring economic stability for its citizens.
The overturning of the LNG export ban represents a significant victory for Texas and the broader energy industry, reinforcing the critical importance of natural gas in the modern energy landscape. With this ruling, the path is clear for continued growth, innovation, and security in America’s energy future.
