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Now is the time to make our voices heard before the haze, smog, and soot choke the sky for good and while there is still time remaining for the Biden administration to reject the many LNG export applications in the queue.
No one likes bad air days. Days when the air smells wrong; the sky is choked with haze, smog, soot; and the weather report has to invent new shades of purple to warn us to stay inside. But what people might not know is that bad air is literally killing us and making us less healthy.
And the build out of liquefied “natural” gas (LNG) export terminals along the Texas and Louisiana coast is making it worse.
A large percentage of U.S. “natural” gas production, which is just fracked methane gas, isn’t used here at home, but now gets shipped directly overseas. The terminals where this gas is turned into a liquid and loaded onto massive tankers emit all sorts of harmful air pollution. These facilities have a permit to pollute, but a recent report shows that just because the government signs off on something doesn’t mean it won’t kill you.
Maybe the most frustrating part of this whole story is that Texas and Louisiana taxpayers are footing the bill for all this suffering.
Seven of the currently operating LNG export terminals are estimated to cause 60 premature deaths every year due to flaring and other emissions. And there are many, many more such terminals in the planning stages looking to become operational within the decade, potentially upping that number to almost 150 premature deaths per year. The “soot” and “smog” that form from the resulting particulate matter and ozone also cause a range of other health problems, including asthma, and lead to people having to miss school and work, and cost us health impacts worth billions of dollars.
These LNG terminals plan to operate for decades to come, and if you add up the health impacts over time it amounts to over 4,000 deaths by 2050. The coastal communities that live in the shadow of these massive facilities face the highest per capita health impacts, but particulate matter and ozone don’t stay confined near their source. They are regional pollutants that can travel hundreds of miles and still cause harm.
As we speak, Harris County, Texas, home to Houston; and Calcasieu Parish, Louisiana are estimated to suffer the most deaths due to LNG terminal air pollution. Dallas County is No. 3, even though it is 250 miles from the nearest LNG terminal.
This report only looks at LNG terminals, but the dirty secret is that many places in Texas and Louisiana are already over-polluted. Oil refineries, petrochemical plants, coal plants, and more are already contributing to air pollution and health harms in the region. This frenzy to export methane gas is only pouring new pollution on top of old.
In Southwest Louisiana, decades of toxic emissions from refineries and petrochemical plants have polluted the air and contaminated the upper Calcasieu River, leading to a seafood advisory, limiting the amount of fish locals can eat. LNG export facilities have expanded this industrial air pollution to communities that had never faced these issues before. Now, residents frequently hear warning alarms and witness massive flares spewing black smoke into the sky. Many in the community report symptoms such as frequent headaches and worsening respiratory problems, clear signs of the harmful impact this pollution is having on their health.
For generations, fishermen in Cameron Parish, Louisiana have depended on the bounty of the estuaries and wetlands, providing for their families and communities. These waters were once an integral part of the local culture and economy, passed down from father to son. After rebuilding through storm after storm, these same families now face a new challenge—being displaced by a multi-billion-dollar industry that not only pollutes their environment but jeopardizes their ability to sustain themselves from it. The risks that coastal communities face like coastal erosion and extreme weather are worsened by the climate crisis, which the LNG industry ironically helps fuel.
Maybe the most frustrating part of this whole story is that Texas and Louisiana taxpayers are footing the bill for all this suffering. Another report from late last year showed how several of these LNG companies have received tax handouts in the billions of dollars, taking money away from needed resources like health and safety services. All this on the promise of good paying jobs to local folks that never materialize. And what’s more, every tanker of LNG that gets shipped overseas raises energy prices here at home.
Talk about a raw deal.
But after nearly a decade of rubber stamping these terminals, the federal government just took a closer look.The U.S. Department of Energy, who authorizes LNG for export, just updated its studies used to determine whether LNG exports actually serve the public interest. The studies conclude that LNG exports raise energy prices, inflame climate change, sabotage the clean energy transition, and cause harm to our local communities.
The incoming presidential administration may try to ignore the evidence. To expect them to choose what’s right for Texas and Louisiana—let’s just say, unfortunately, we won’t be holding our breath.
Now is the time to make our voices heard before the haze, smog, and soot choke the sky for good and while there are still a few days remaining that the Biden administration can reject the many LNG export applications in the queue. We all need to act now to protect the air in Louisiana and Texas, and everyone from the worst of the climate crisis.
"Banks and investors can still act to put an end to the unrestrained support they offer to the companies responsible for LNG expansion," the authors of a new report said.
Liquefied natural gas developers have expansion plans that could release 10 additional metric gigatons of climate pollution by 2030, and major banks and investors are enabling them to the tune of nearly $500 billion.
A new report published by Reclaim Finance on Thursday calculates that, between 2021 and 2023, 400 banks put $213 billion toward LNG expansion and 400 investors funded the buildout with $252 billion as of May 2024.
"Oil and gas companies are betting their future on LNG projects, but every single one of their planned projects puts the future of the Paris agreement in danger," Reclaim Finance campaigner Justine Duclos-Gonda said in a statement. "Banks and investors claim to be supporting oil and gas companies in the transition, but instead they are investing billions of dollars in future climate bombs."
"While banks will secure their profits, it's at the expense of frontline communities who often will not be able to get their livelihoods, health, or loved ones back."
The International Energy Agency has concluded since 2022 that no new LNG export developments are required to meet energy demand while limiting global temperatures to 1.5°C above preindustrial levels. Despite this, LNG developers have upped export capacity by 7% and import capacity by 19% in the last two years alone, according to Reclaim Finance. By the end of the decade, they are planning an additional 156 terminals: 93 for imports and 63 for exports.
Those 63 export terminals, if built, could alone release 10 metric gigatons of greenhouse gas emissions—nearly as much as all currently operating coal plants release in a year. What's more, building more LNG infrastructure undermines the green transition.
"Each new LNG project is a stumbling block to the Paris agreement and will lock in long-term dependence on fossil fuels, hampering the shift toward low-carbon economies," the report authors explained.
Many large banks have pledged to reach net-zero emissions, yet they are still financing the LNG boom. U.S. banks are especially responsible, Reclaim Finance found, funding nearly a quarter of the buildout, followed by Japanese banks at around 14%.
The top 10 banks funding LNG expansion are:
While 26 of the banks on the report's list of top 30 LNG financiers have made 2050 net-zero commitments, none of them have adopted a policy to stop funding LNG projects. None of top 10 banks have any LNG policy at all, despite the fact that Bank of America and Morgan Stanley helped found the Net Zero Banking Alliance. Instead of winding down financing, these banks are winding it up, as LNG funding increased by 25% from 2021 to 2023. In 2023 alone, 1,453 transactions were made between banks and LNG developers.
All of this funding comes despite not only climate risks, but also the local dangers posed by LNG export terminals to frontline communities. Venture Global's Calcasieu Pass LNG, for example, has harmed health through excessive air pollution while dredging and tanker traffic has disturbed ecosystems and the livelihoods of fishers.
"Banks still financing LNG export terminals and companies are focused on short-term profits and cashing in on the situation before global LNG oversupply kicks in. On the demand side, financing LNG import terminals delays the much-needed just transition," said Rieke Butijn, a climate campaigner and researcher at BankTrack. "While banks will secure their profits, it's at the expense of frontline communities who often will not be able to get their livelihoods, health, or loved ones back. People from the U.S. Gulf South to Mozambique and the Philippines are rising up against LNG, and banks need to listen."
The report also looked at major investors in the LNG boom. Here too, the U.S. led the way, contributing 71% of the total backing.
The top 10 LNG investors are:
Just three of these entities—BlackRock, Vanguard, and State Street—contributed 24% of all investments.
Reclaim Finance noted that it is not too late to defuse the LNG carbon bomb.
"Nearly three-quarters of future LNG export and import capacity has yet to be constructed," the report authors wrote. "This means that banks and investors can still act to put an end to the unrestrained support they offer to the companies responsible for LNG expansion."
To this end, Reclaim Finance recommended that banks establish policies to end all financial services to new or expanding LNG facilities and to end corporate financing to companies that develop new LNG export infrastructure. Investors, meanwhile, should set an expectation that any developers in their portfolios stop expansion plans and should not make new investments in companies that continue to develop LNG export facilities. Both banks and investors should make clear to LNG import developers that they must have a plan to transition away from fossil fuels consistent with the 1.5°C goal.
"LNG is a fossil fuel, and new projects have no part to play in a sustainable transition," Duclos-Gonda said. "Banks and investors must take responsibility and stop supporting LNG developers and new terminals immediately."
"We are happy about the delay, but these projects don't ever need to be approved and neither does any other LNG facility," one frontline advocate said.
Frontline communities along the Gulf Coast were granted a "temporary reprieve" last week when the Federal Energy Regulatory Commission moved to pause its approval of the controversial Calcasieu Pass 2 liquefied natural gas export terminal while it conducts an assessment of its impact on air quality.
FERC approved Venture Global's CP2 in late June despite opposition from local residents who say the company's nearly identical Calcasieu Pass terminal has already wracked up a history of air quality violations and disturbed ecosystems and fishing grounds in Louisiana's Cameron Parish, harming health and livelihoods.
"This order reveals that FERC recognizes that CP2 LNG's environmental impacts are too great to pass through any real scrutiny" Megan Gibson, a senior attorney with the Southern Environmental Law Center (SELC), said in a statement on Monday.
"FERC's pause on construction may give us some temporary reprieve, but this project never should have been authorized in the first place."
FERC's decision follows a request for a rehearing of its June decision filed by frontline residents and community groups including For a Better Bayou and Fishermen Involved in Sustaining Our Heritage (FISH) as well as the Sierra Club and the Natural Resources Defense Council. In their request, the groups and individuals pointed to errors the commission had made in its approval decision.
"With this order, it seems FERC is finally willing to acknowledge that it has not done enough to properly consider the cumulative harm on communities caused by building so many of these LNG export terminals so close together," Nathan Matthews, a Sierra Club senior attorney, said in a statement. "Prohibiting construction of CP2 LNG while FERC takes another look at the environmental impact of this massive, polluting facility is the right thing to do."
"Still," Matthews continued, "FERC must take concrete steps to properly evaluate the true scope of the dangers posed to communities from gas infrastructure moving forward and avoid making unwarranted approvals in the future."
FERC's decision comes over four months after the D.C. Circuit Court remanded the commission's approval of Commonwealth LNG, also in Louisiana, over concerns that it had not fully assessed the impacts of that project's air pollution emissions. Now, frontline advocates are urging FERC to do its due diligence as it weighs the environmental impacts of CP2.
"Through the lenses of optical gas imaging, we've seen massive plumes of toxic emissions, undeniable proof that these projects poison the air we breathe," James Hiatt, director of For a Better Bayou, said of LNG export facilities. "Modeling must use the latest data from the most local sources to fully capture the harm these facilities inflict on Cameron Parish. Anything less is a betrayal of our community. FERC must choose justice over profit and stop sacrificing people for polluters."
Gibson of SELC said that FERC had already repeated some of the errors in its CP2 approval in its new order.
"This continued failure to fulfill its regulatory duty is not just an oversight—it is a failure to protect vulnerable communities and our economy from the real potential harms of this massive export project," Gibson said.
FERC's decision comes as the fate of the LNG buildout itself hangs in the balance. The Biden administration's Department of Energy is currently rushing to complete its renewed assessment of whether or not LNG exports serve the public interest. Environmental and frontline groups have argued that they do not because of local pollution, the fact that they would raise domestic energy bills, and their contribution to the climate emergency. CP2 alone would spew 8,510,099 metric tons of carbon dioxide-equivalent per year, which is about the same as adding 1,850,000 new gas cars to the road.
While President-elect Donald Trump has promised to "drill, baby, drill" and is likely to disregard any Biden administration conclusions, a strong outgoing statement against LNG exports would help bolster legal challenges to Trump energy policy.
At the same time, Bill McKibben pointed out in a column on Tuesday that the administration's pause on LNG export approvals while it updates its public interest criteria has acted to slow the industry's expansion, and that FERC's reconsideration of CP2 could add to this delay.
"The vote for the new review is 4-0, and bipartisan," McKibben wrote. "It could slow down approvals for the project till, perhaps, the third quarter of next year. And that's good news, because the rationale for new LNG exports shrinks with each passing month, as the gap between the price of clean solar, wind, and battery power, and the price of fossil fuel, continues to grow."
Ultimately, frontline Gulf Coast advocates want to see the LNG buildout halted entirely.
"I, along with the fishermen in Cameron, Louisiana, know firsthand how harmful LNG exports are, and see the total disregard they have for human life as they poison our families and seafood," said FISH founder Travis Dardar, an Indigenous fisherman in Cameron, Louisiana. "FERC's pause on construction may give us some temporary reprieve, but this project never should have been authorized in the first place. As far as anyone who believes in the fairytale of LNG being cleaner, we have paid with our communities and livelihoods. It's time to break these chains and turn away from this false solution."
Roisheta Ozaine, a prominent anti-LNG activist and founder of the Vessel Project of Louisiana, said that she, as a mother in an environmental justice community, saw "firsthand how LNG facilities prioritize profit over the well-being of our families. Commonwealth and CP2 are no different."
"We are happy about the delay, but these projects don't ever need to be approved and neither does any other LNG facility," Ozane continued. "My children are suffering from health conditions that threaten their daily lives, all while regulatory agencies and elected officials turn a blind eye. It's time for our leaders to put people before profit and prioritize the health of our communities over the pollution that harms us. We deserve a future where our children's health is safeguarded, not sacrificed."