DEEP DIVE: U.S. Lawmakers, Industry Leaders Clash with Biden Administration on LNG Export Pause

The United States is the world’s leading supplier of liquefied natural gas (LNG), having just entered the market in 2016. After a record-breaking year for the industry in 2023, why has President Joe Biden’s administration paused any permits for new facilities that export LNG to non-Free Trade Agreement (FTA) countries?

The answer depends on a confluence of factors, ranging from climate change to the supply of LNG within the country.

Notably, the surge in exports has occurred during a global shift toward cleaner and more renewable energy sources. LNG demand is expected to rise by more than 50% by 2024 as China and South Asia switch to gas from coal. A McKinsey study projects that gas is the only fossil fuel that is expected to grow through 2035.