API, NOIA urge Department of Energy to lift pause on LNG export permits

The American Petroleum Institute (API) and the National Ocean Industries Association (NOIA) have issued separate statements in response to the U.S. Department of Energy’s (DOE) study on the impacts of liquefied natural gas (LNG) exports.

“It’s time to lift the pause on new LNG export permits and restore American energy leadership around the world,” said API President and CEO Mike Sommers. “After nearly a year of a politically motivated pause that has only weakened global energy security, it’s never been clearer that U.S. LNG is critical for meeting growing demand for affordable, reliable energy while supporting our allies overseas.”

"Outdated arguments against LNG no longer align with today's energy reality. U.S. energy performance has repeatedly proven critics wrong on the global stage,” added NOIA President Erik Milito. “The Administration is recycling the same old, tired political talking points from a decade ago, which have been shown to be completely inaccurate.”

Both API’s and NOIA’s response reiterated multiple independent studies that have proven the net benefits of continued LNG exports for strengthening the economy, driving climate progress and bolstering global energy security.

“Americans enjoy among the lowest residential natural gas prices in the world,” said Sommers. “Despite U.S. LNG exports reaching record highs in 2023, domestic prices declined by 62%, demonstrating the industry’s ability to meet rising global demand for natural gas while maintaining a well-supplied domestic market. Blocking needed natural gas infrastructure, including pipelines, will impede access to low-cost natural gas regardless of LNG export levels.”

“Coal-to-gas switching is the main reason that the U.S. has led the world in reducing CO₂ emissions over the past two decades,” Sommers’ statement continued. “A recent study by Berkeley Research Group found the climate impact of U.S. LNG delivered to Europe and Asia is roughly 50% lower than that of coal in those regions. In Asia, demand for LNG is projected to double by 2050 according to Wood Mackenzie, and without resumed U.S. LNG export permits, countries in the region could be forced to turn to higher-emitting sources.”

"The pause on LNG export permits threatens tens of thousands of jobs along the Gulf Coast, billions in wages, and vital energy infrastructure investments. Prolonging this pause not only undermines the welfare of American workers but also inadvertently gives a competitive advantage to nations like Russia,” added Milito. "The stakes are undeniable: by ending the LNG permitting pause, we can secure affordable energy for U.S. families, affirm our position as a global energy leader, and drive forward emissions reduction efforts. The time to act is now—we must lead, not step back."