Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Biden administration denies Cheniere's request to sidestep LNG pollution rule

Commodities Sep 07, 2022 05:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A sign of U.S LNG company Cheniere is seen at the registration counter at the International Conference & Exhibition on Liquefied Natural Gas (LNG2019) in Shanghai, China April 1, 2019. REUTERS/Stringer
 
LNG
-0.62%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NG
-6.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Valerie Volcovici and Nichola Groom

WASHINGTON (Reuters) -The U.S. Environmental Protection Agency (EPA) said on Tuesday it has denied a request from leading liquefied natural gas (LNG) exporter Cheniere Energy (NYSE:LNG) Inc to exempt turbines at its two U.S. Gulf Coast terminals from a hazardous pollution rule.

The rejection raises questions about whether the Texas-based company will have to reduce exports of the supercooled fuel to install new pollution control equipment at its facilities at a time that Europe is depending on increased shipments of LNG from the United States to offset cuts from Russia.

Europe is facing its worst-ever gas supply crisis, with energy prices soaring and German importers discussing possible rationing in the European Union's biggest economy after Russia reduced gas flows westward. Moscow has cited a pipeline fault for the halt, but Europe sees it as apparent retribution for Western sanctions imposed on Russia for its invasion of Ukraine.

"Though EPA is denying Cheniere's request for a special subcategory to comply with the turbines rule, the Agency will continue to work with them and with other companies as needed to assure they meet Clean Air Act obligations," EPA spokesperson Tim Carroll said in an email.

Owners and operators of gas turbines had a Sept. 5 deadline to comply with the National Emission Standards for Hazardous Air Pollutants (NESHAP), which the administration of President Joe Biden put into effect after an 18-year stay.

The rule imposes curbs on emissions of known carcinogens like formaldehyde and benzene from stationary combustion turbines, like those used by LNG facilities.

Cheniere had asked the Biden administration to exempt a specific kind of turbine that it installed at its LNG terminals from the NESHAP limits, arguing they would reduce shipments from the top U.S. exporter for an extended period and endanger the country's efforts to ramp up supplies to Europe.

Cheniere was the only company to request such an exemption, according to the EPA. The company claimed the model of turbine it uses at its Texas and Louisiana facilities is the best technology for withstanding the types of storms that often strike the Gulf Coast, but that the equipment is also exceptionally hard to retrofit, and that engineering and installation of pollution controls could take years.

Cheniere spokesperson Eben Burnham-Snyder said that while the company "strongly disagrees" with the EPA's decision, "we will work with our state and federal regulators to develop solutions that ensure compliance."

He said the decision may result in "unwarranted expenditures" but added that coming into full compliance will not result in a material financial or operational impact and will not affect its ability to supply LNG to customers and countries around the world.

Gas-powered turbines emit formaldehyde and other dangerous pollutants through a chemical transformation that occurs when methane, the main ingredient in natural gas, is superheated.

Around 250 U.S. gas turbines are subject to the new rule, according to an EPA list, nearly a quarter of them Cheniere's.

The Houston-based company accounts for around 50% of U.S. shipments of LNG abroad.

Ilan Levin, associate director of the Environmental Integrity Project, said the decision by EPA to deny Cheniere's request was not a surprise because it had warned the company that it needed to meet the standard for years.

Reuters reported last month that the EPA had questioned Cheniere's selection of gas turbines without adding pollution controls in 2011 and again in 2013.

"We applaud the EPA for enforcing the law and making sure the people living near these plants in the coastal bend and southeast Texas/southwest Louisiana get the same clean air protections as everybody else," he said.

Cheniere shares closed 2.3% lower at $158.58 on Tuesday.

Biden administration denies Cheniere's request to sidestep LNG pollution rule
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
Donald Hart
Donald Hart Sep 07, 2022 4:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The world is running out of NATURAL gas and we are shutting down supply from the US?? Is the Biden administration run by a bunch of juveniles?? How about supplying Russia's enemies with Natural gas you idiots!!
Joe Rizzuto
Joe Rizzuto Sep 07, 2022 7:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
we have idiots in our current administration...
donald terry
donald terry Sep 07, 2022 5:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shut it down!
Donald Hart
Donald Hart Sep 07, 2022 5:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you are a ****
Midnight Trader
Midnight Trader Sep 07, 2022 4:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks Joe. These companies need to start abiding by the law…
Donald Hart
Donald Hart Sep 07, 2022 4:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you are a ********
Rex Price
Rex Price Sep 06, 2022 6:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
HaHa - ******Europe.....good call, Joe.  Who cares about the world economy? I'm worried about the my great grandchildren and making sure their beach house isn't under water.
Gazmend Duri
Gazmend Duri Sep 06, 2022 5:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this is a bull *******, today we coul expect the price to rise because of this factors and the price drops pfff
Mitchski Love
Mitchski Love Sep 06, 2022 4:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Surprised? Uh no...planning for male pregnancy centers is more important
Midnight Trader
Midnight Trader Sep 06, 2022 4:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We love formaldehyde.. uh.. no
Donald Hart
Donald Hart Sep 06, 2022 4:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Midnight Trader is a mor#n!!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email