Cheniere Energy seeking exemption from pollution rule - Reuters

Philipp Berezhnoy/iStock via Getty Images

Cheniere Energy (NYSE:LNG) has asked the Biden administration to exempt it from limits on emissions of toxic pollutants, arguing they could force it to shut for weeks and endanger efforts to ramp up supplies of liquefied natural gas to Europe, Reuters reported Friday.

At issue is a rule under the U.S. Clean Air Act called the National Emissions Standards for Hazardous Pollutants, which imposes curbs on emissions of known carcinogens such as formaldehyde and benzene from stationary combustion turbines.

The Environmental Protection Agency announced in February that starting in August, the rule will apply to two types of gas-fired turbines that previously were left out of the regulation.

Around 250 U.S. gas turbines will be subject to the rule, according to an EPA list that showed Cheniere (LNG) is the only LNG company that uses these type of turbines and whose facilities would be affected.

According to Reuters, the company, which accounts for about half of all LNG shipments from the U.S., has told the EPA that its export plants in Louisiana and Texas use a unique turbine design that cannot be easily equipped with pollution controls.

Cheniere Energy (LNG) looks "substantially undervalued" at current levels, Power Hedge writes in a bullish analysis posted on Seeking Alpha.

Comments

[kmi]

It is extremely peculiar that only $LNG appears to be affected by this rule.

It also seems peculiar in light of the shutdown of the Freeport export facility seekingalpha.com/... , which appears to have been part of the cause of the fall in NG price.

I suspect getting the exemption is a 50-50 tossup between the admin's promises to send Europe more gas and relying on Cheniere to do it, and the fact that every appointee in the admin is a soldier in its war on carbon energy.

[qwerty11]

Now LNG is deemed to be critical any additional pollutage will be waived

[Johnny Skyhook]

"Neither Maisano nor Cheniere would comment to Reuters on why the company used a turbine design at its facilities that could not easily accommodate equipment that might be needed if the regulatory stay on gas turbines were lifted."

[Vlae Kershner]

I'm surprised the stock isn't down more on this.

[Johnny Skyhook]

@Vlae Kershner

Wait until local residents file their lawsuits.

www.texasobserver.org/...

[indy78]

Biden’s leftest handlers that truly know nothing in life but their academia careers will not approve the the exemption. So be it! Let European nations burn coal to compensate and stay warm this chilly 🥶 winter. Wait, global warming. They should be fine.

[Troutbum41]

Biden will shut them down then blame them for not making LNG and causing prices to increase. The same leftist talking points.

[Djreef1966]

I’m thinking Biden will say “no”.

[DrT]

That's government. One day your equipment is legal and paid for, the next day it's illegal. Then you spend millions of dollars (again). No transition period, no compensation.

[martyr1777]

@DrT Or maybe Cheniere could have used a less toxic turbine design.

You know like all the other LNG exporters since they aren't affected by the change.

[DrT]

@martyr1777 Or maybe they used the technology of the time as they're the oldest LNG exporter.

[HunterKiller89]

@DrT "No transition period, no compensation."

We're STILL in the non-existent transition period for another month....