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Act on LNG Exports

Government Red Tape is Delaying LNG Investment: Learn More about the 30+ applications that require immediate action at the Energy Department.

Expanding U.S. Natural Gas Exports Would

Blog Posts

  • Let S.2012 Open the Door for More LNG Exports

    February 3, 2016 –   This week, the U.S. Senate will likely vote on S. 2012, the “Energy Policy Modernization Act,” a bipartisan energy bill which includes language that would expedite the review of applications to export U.S. liquefied natural gas. This provision is necessary to clear the backlog of natural gas export applications to countries we don’t have free trade agreements, promote the most commercially viable projects and send the Department of Energy (DOE) a strong signal that exporting American natural gas is very much in the public interest. Specifically, S.2012 would require the U.S. Energy Secretary to decide on applications no later than 45 days after the Federal Energy Regulatory Commission (FERC) or the Maritime Administration has concluded its review. And with an abundant supply of low-cost natural gas to fuel domestic demands for decades to come, exporting LNG in the global marketplace is the next step on the path to increased economic prosperity. LNG exports would further incentivize natural gas production and bring about additional economic benefits on top of what the industry has already provided for our country. Two studies commissioned by the DOE in 2014 and 2015 found that LNG exports would have positive macroeconomic benefits. Read more

  • Comprehensive Senate Energy Bill Inches Closer to Finish Line with LNG Exports Reform in Tow

    This week, the Senate began their full floor debate over Energy and Natural Resources Committee Chairwoman Lisa Murkowski’s (R-Alaska) Energy Policy Modernization Act, or S. 2012. And with four amendments already approved, we are inching closer to the finish line on this historic energy package that could have tremendous economic implications for the U.S. The first significant energy bill in seven years, this legislation would change a host of policies, including modernization of the current approval process for permits to export liquefied natural gas (LNG). Currently the Department of Energy (DOE) is not held to a set deadline for issuing approvals of applications on natural gas export projects once a review by the Federal Energy Regulatory Commission (FERC) is complete. This currently slow pace of approval has caused many viable applications to languish in the queue for over three years. The good news for this policy change is that the economics behind LNG exports are pretty clear. From both a macro and microeconomic perspective, the economy and Americans alike are expected to see benefits from LNG exports. Earlier this month, a study commissioned by the DOE concluded that in the case of large quantities of LNG exports, the “negative impacts Read more

  • India and U.S. Begin LNG Trade Relationship

    January 21, 2016 – This week, India’s state-owned energy company GAIL Ltd announced that India is to receive its first imports of US shale gas in 2017. The exports, which will come from Freeport LNG Expansion Texas terminal authorized by the U.S. Department of Energy back in 2013, is the first long term contract for natural gas that India has made with the U.S. Not only does this announcement point to the United States’ new role as a net exporter of LNG, but it could also have significant implications for countries in East Asia. U.S. LNG exports are is essential to developing global energy access for emerging countries and communities. The International Energy Agency (IEA) estimates that in 20 years, there will still be one billion people without access to electricity or clean cooking fuels. In India, whose population is over one billion, roughly 45% of rural households and 6 million urban households remain without electricity, according to the 2011 census. This lack of energy resources will stifle the health and economic well-being of developing regions like India. Natural gas has the potential to provide affordable energy for many to light and heat homes and businesses. U.S. LNG exports to Read more

  • As U.S. LNG Exports Come Online, Now Is Not The Time To Rest On Laurels

    January 13, 2016 – This week, the liquefied natural gas (LNG) industry will accomplish a historic benchmark. Cheniere Energy has begun to receive natural gas to convert into the super-cooled LNG where it will be exported from the Sabine Pass terminal in Louisiana. According to Bloomberg, Cheniere Energy is receiving about 50 million cubic feet of natural gas a day. The company is chilling the natural gas into liquefied natural gas, storing it in tanks aboard the first cargo ship – The Energy Atlantic – set to leave sometime this month. This is a remarkable feat given that just a decade ago the U.S. was panicking to construct these multi-billion dollar facilities to import LNG. Thanks to technology and advancements in hydraulic fracturing, we have changed the destiny of our energy future by unleashing a flood of shale gas. But now is not the time to stop and pat ourselves on the back. In addition to U.S. activities, the first shipment of LNG also departed from a pending Australia project, the Pacific LNG (APLNG) facility on Curtis Island in Queensland, according to ConocoPhillips on Monday. The U.S. faces stiff competition from countries like Qatar, Australia and East African nations looking Read more

  • Another Government Report Signals Benefits of LNG Exports

    January 8, 2016 – Last week, the Office of Fossil Energy of the U.S. Department of Energy (DOE) released its latest report examining the cumulative impacts of liquefied natural gas (LNG) exports. This is the second study that examines the economic effects of U.S. LNG exports, specifically between 12 and 20 billion cubic feet per day (Bcf/d). And as previously confirmed by the DOE in their October 2014 study examining exports between 0 and 12 Bcf/d, higher levels of exports prompt more U. S. growth and increase investment in American energy security. The report, “The Macroeconomic Impact of Increasing U.S. LNG Exports,” was commissioned to inform DOE’s decisions on applications seeking authorization to export LNG from the U.S. to non-free trade agreement (FTA) countries. And the findings couldn’t be more conclusive. The study states that in the case of large quantities of LNG exports, “Negative impacts in energy‐intensive sectors are offset by positive impacts elsewhere.” Translation? A strong macroeconomic case for LNG exports. Notably, the report states, “…the impact of increasing exports from 12 Bcf/d is between 0.03 and 0.07 percent of gross domestic product (GDP) over the period of 2026–2040, or $7–$20 billion annually…” Study author Kenneth Medlock, with the Read more