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LNG Exports to Ukraine are a False Hope

“Exporting U.S. natural gas to Ukraine will not weaken Russian President Vladimir Putin but it will harm American consumers, manufactures and the U.S. economy.  U.S. LNG exports to Ukraine are a false hope.  The U.S. does not have any LNG export facilities constructed and   LNG exports are not expected to begin in earnest until 2017.

Regardless, there is nothing standing in the way of Ukraine, or all of Western Europe, from signing a contract tomorrow to import LNG from one of the six facilities that have already been approved to export American natural gas to nations without a U.S. free trade agreement.  The hard fact of the matter is that LNG exports to central Europe are not economically viable. 

A much better option for weakening Putin is to export American hydraulic fracturing technology and knowhow to our Ukrainian allies so they can develop their own domestic shale gas resources.  U.S. loan guarantees will allow Ukraine to advance partnerships with U.S. oil companies to develop its more than 40 trillion cubic feet of technically recoverable natural gas.  Ukrainian shale gas resources could come online years before the first LNG tanker ship leaves an American port.”