LNG Exports Reaching Danger Zone for Consumers and Manufacturers, says AEA
America's Energy Advantage (AEA) wrote a letter to Energy Secretary Moniz highlighting several concerns brought about by the Department of Energy’s (DOE) four recent export approvals of liquefied natural gas (LNG) to non-FTA countries, noting among other things:
- America’s newfound abundance of natural gas is powering a remarkable manufacturing renaissance, which to date has generated more than $110 billion of announced investment in over 120 different manufacturing projects, already responsible for an impressive 68,000 manufacturing jobs this year.
- The Department is making these decisions without legal standards to guide it as to when export applications and rescission of export authorizations are in the public interest. Pending development of adequate standards, the Department should suspend its disposition of liquefied natural gas (LNG) export applications and assess the implications of further approvals on the public interest, before lasting harm is done to our economy.
- With the approval of the Dominion Cove Point application, the Department has now approved four consecutive applications, which has raised the cumulative volume of LNG exports to 6.6 Bcf/d, well in excess of the “low export scenario” level identified in the NERA report.
- The NERA report does not account for the Administration’s newly announced regulations on coal-fired power plants which will push the utility sector toward a greater reliance on natural gas. The report also ignores the transportation sector’s growing trend of fuel switching and the manufacturing sector’s growth and current demand projections.
- As was done for natural gas importation 30 years ago, the Department of Energy needs to develop standards that will enable it to make informed public interest determinations regarding LNG export applications. Moreover, DOE should develop these standards based on comments from U.S. stakeholders.
- The Department has now approved four consecutive LNG exports applications. Domestic gas prices are climbing, entering a zone that will increase prices for consumers and harm manufacturers. There is a particularly acute need to establish reasonable export application and rescission standards to help ensure that DOE decision-making serves the public interest.
About America's Energy Advantage: America's Energy Advantage, Inc. is a 501(c)(6) not for profit organization that is dedicated to educating the American public about the growth in American manufacturing that has been made possible by our country's abundant and affordable supply of natural gas.