Petroplex News

WASHINGTON, DC — The House of Representatives has passed legislation to reverse President Biden's liquified natural gas (LNG) export ban. The bill, known as H.R. 7176, the Unlocking Our Domestic LNG Potential Act of 2024, aims to unleash American LNG to lower energy costs and enhance U.S. energy security and the security of its allies.

"President Biden has used every weapon and every tool available to him to make producing American energy more difficult," said Rep. August Pfluger, the chairman of the RSC House Energy Action Team (HEAT). "His decision to ban future US LNG exports is just the latest strike in his efforts to appease his radical climate interest groups who refuse to accept the reality that American energy is the cleanest, most secure option for the U.S. and our allies. The decision to ban exports creates uncertainty and discourages investments that would otherwise create jobs and expand the supply of natural gas. I am proud that the House passed my legislation to promote American energy dominance and stand up for jobs in the Permian Basin."

The ban on LNG exports was announced by President Biden on January 26, 2024. The White House justified the action based on the need to address the climate impacts of natural gas. However, critics argue that American LNG exports have strong environmental benefits and that previous administrations conducted studies on the matter without blocking export permits.

The Unlocking Our Domestic LNG Potential Act of 2024, H.R. 7176, amends the Natural Gas Act to repeal all restrictions on the import and export of natural gas. It grants the Federal Energy Regulatory Commission (FERC) exclusive authority to approve or deny applications for the siting, construction, expansion, or operation of LNG facilities.

The legislation also clarifies that it does not limit the President's authority under various provisions of law to impose sanctions on foreign persons or governments. This includes countries designated as state sponsors of terrorism.

The passage of this legislation is seen as a victory for the American energy industry and for job creation in the Permian Basin. It is hoped that the reversal of the LNG export ban will lead to lower energy costs and increased energy security for the United States and its allies.

With the House's approval, the legislation will now move to the Senate for consideration. It remains to be seen whether the bill will gain enough support to pass in the upper chamber. However, proponents of the bill remain hopeful that it will garner bipartisan support and become law.

The Unlocking Our Domestic LNG Potential Act of 2024 is seen as a crucial step towards promoting American energy dominance and ensuring a secure and reliable energy supply for the nation and its partners.