Biden’s export freeze isn’t cooling US gas demand

Your guide to the political forces shaping the energy transformation

Feb 01, 2024 View in browser   By Zach Bright Claudine Hellmuth/E&E News (illustration); FERC (documents); PxFuel (pipes); Francis Chung/E&E News (FERC building) The Biden administration’s pause on natural gas exports may have climate advocates cheering — but it’s done little to faze growing domestic demand for the fossil fuel. Pipeline giant Williams Cos. is planning a massive project in the Southeast that would rival the controversial Mountain Valley pipeline in size, my colleague Carlos Anchondo and I write today. While the pipeline could carry some gas for export, its focus would be delivering the fuel to Virginia, the Carolinas, Georgia and Alabama. And the leading potential buyers are Southeast utilities planning to add record amounts of gas-fired generation to replace retiring coal. The project reflects power providers’ hunger for natural gas as a bedrock fuel while electricity demand surges. That has drawn criticism from environmentalists, because using gas to generate electricity could complicate the country’s goal of a carbon-free grid by 2035. The proposed Southeast Supply Enhancement project would expand the existing capacity of the sprawling Transcontinental pipeline, which runs about 10,000 miles from Texas to New York. Williams expects to file initial paperwork with the Federal Energy Regulatory Commission in “early 2024,” according to its website Thursday. The company has not responded to requests for comment, but CEO Alan Armstrong told investors last year that “urgent demands” from customers make the project worthwhile. The amount of gas from the expansion would be “probably enough to run five or six big new gas plants,” Greg Buppert with the Southeast Environmental Law Center told me Wednesday. The news follows President Joe Biden’s decision to slam the brakes on new permits for liquefied natural gas exports, directing the Department of Energy to analyze how shipments overseas affect greenhouse gas emissions and energy prices. Environmentalists pressured the administration to make good on the U.S. commitment to join other countries in moving away from fossil fuels. It’s still unclear how much the pause will slow LNG growth. The U.S. remains the world’s largest LNG exporter, with capacity expected to nearly double by 2030, and it produces more oil and gas than any other country in the world.   It's Thursday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Zach Bright. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to zbright@eenews.net.   YOUR GUIDE TO EMPIRE STATE POLITICS: From the newsroom that doesn’t sleep, POLITICO's New York Playbook is the ultimate guide for power players navigating the intricate landscape of Empire State politics. Stay ahead of the curve with the latest and most important stories from Albany, New York City and around the state, with in-depth, original reporting to stay ahead of policy trends and political developments. Subscribe now to keep up with the daily hustle and bustle of NY politics.      Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Zack Colman breaks down how President Joe Biden’s stance on Gaza could alienate young climate voters in 2024. Power Centers POLITICO illustration/Photos by iStock, Stacy Manson/NPS Solar in the West The solar industry and the Biden administration see federal desert lands in Nevada, Arizona, California and other Western states as the best chance to increase utility-scale solar projects. The Bureau of Land Management is tasked with balancing development with preserving plants and wildlife. The big challenge for BLM is to sign off on increased solar development on an expedited timeline while protecting untouched landscapes, Scott Streater writes. Marrying U.S. policy to global pledges President Joe Biden's clean energy adviser John Podesta is stepping into the added role of adviser on international climate policy, replacing current climate envoy John Kerry. Some analysts see the placement of Podesta's new role in the White House instead of the State Department as a way to sidestep a provision enacted by Congress last year that requires Senate confirmation for special envoys. 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Energy capital's next wave: Oil producers and renewable energy developers alike are trying to make Houston a global low-carbon hydrogen power center. Subscriber Zone A showcase of some of our best subscriber content. Ameren Missouri says it is mining bitcoin at a Missouri coal plant to address variability on the grid. | Claudine Hellmuth/E&E News (illustration); Freepik(computer, Bitcoin logo, cyber effects); Corrigan Company (Ameren Portage Des Sioux Power Plant) The U.S. Energy Information Administration will start collecting data on the energy usage of cryptocurrency miners to understand how the industry is affecting the power grid. Hawaii state lawmakers are considering a raft of proposed climate legislation as recovery continues from last year's deadly wildfires on Maui. A proposal to regulate hydrogen production in California is dead after failing to get a vote in the Assembly this week. That's it for today, folks! Thanks for reading.   SUBSCRIBE TO CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So we have something cool for you: A brand-new California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Subscribe now to California Climate to keep up with the changes.       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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