February 15, 2024

DENVER – Following President Biden’s recent decision to halt new liquefied natural gas (LNG) export licenses, Western Energy Alliance today called on the U.S. House of Representatives to pass the “Unlocking Our Domestic LNG Potential Act” (H.R. 7176). Lawmakers will debate the legislation introduced by Rep. August Pfluger (TX-11) this week. The proposal would revoke export licensing from the U.S. Department of Energy (DOE), which is the authority President Biden used to “pause” new exports, and grant exclusive regulatory authority to the Federal Energy Regulatory Commission (FERC).

“In recent weeks, we’ve seen bipartisan pushback to Pres. Biden’s decision and strong support for exporting American LNG to our allies. It’s clear the president made an election-year calculation rather than one based on facts or public interest. Congress needs to step in to take corrective action,” said Kathleen Sgamma, president of the Alliance. “The fact that DOE retains authority today over export decisions is a relic of the 1938 Natural Gas Act. Federal licensing isn’t required for other commodities and is born of an outdated philosophy that natural gas must be conserved because of its scarcity. The words ‘American natural gas’ and ‘scarcity’ should never be said in the same sentence ever again, but that old-fashioned statute remains. By eliminating DOE from the equation, Congress can remove an outdated and unnecessary step to help ensure secure energy for our allies, further greenhouse gas reductions, and economic growth.”

The Alliance recently joined a coalition of oil and natural gas trade associations in sending a letter to leaders in the House urging passage of H.R. 7176. The coalition included the Energy Workforce & Technology Council, Gulf Energy Alliance, Independent Petroleum Association of America, Gulf Energy Alliance, International Association of Drilling Contractors, National Ocean Industries Association, National Stripper Well Association, Texas Alliance of Energy Producers, and
U.S. Oil & Gas Association.

“In a time of heightened political division, the support for LNG exports we’ve witnessed in recent weeks from both sides of the aisle reflects a shared recognition of the importance of American natural gas exports to Europe and Asia. We urge Congress to unite in passing this legislation, reinforcing the U.S. as a global energy leader,” added Sgamma.

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