President’s Executive Orders Show Support for Infrastructure Investment Expediting Keystone XL and Dakota Access pipeline projects is right decision for U.S. economy WASHINGTON, DC – The American Council for Capital Formation today released the following statement from ACCF Vice President of Communications Robert Dillon on President Donald Trumps’ executive orders expediting the Dakota Access Pipeline and Keystone XL Pipeline projects: “In signing the Keystone XL and Dakota Access executive orders, President Trump is following through on his campaign promise to reverse the previous administration’s approach of abusing the regulatory process to pursue a political agenda. Unfortunately, that agenda came at // Read More
- States with proposed LNG export terminal
- States that produced at least 200 bcf of natural gas in 2011
- States that produced at least 200 bcf of natural gas in 2011; Terminal proposed in state
Facts on LNG Exports
- The Natural Gas Act of 1938, as amended, requires companies to obtain an authorization from the U.S Department of Energy (DOE) to import or export natural gas, including LNG to or from a foreign country.
- Today there are over 30 applications pending review at DOE to export LNG to countries without free trade agreements with the U.S. – one application has been under review at DOE for more than 1,000 days. DOE’s piecemeal approach to approving applications risks ceding our LNG energy advantage to other exporting nations such as Russia, Qatar, or even Australia and Canada.
- LNG liquefaction and export facilities are capital-intensive projects. A new greenfield LNG export facility could cost over $10 billion and require five or more years to permit and construct.
- The U.S. has the world’s largest recoverable shale gas reserves (1,161 trillion cubic feet, according to EIA) and thus has ample resources to meet domestic needs and export LNG for decades to come.
- The DOE’s own macroeconomic analysis conducted by NERA Consulting found significant economic and trade benefits for the U.S. from exporting LNG, and concludes that those benefits rise as the volume of LNG exports increases. NERA also independently conducted an updated version of the study in February 2014, that confirmed its findings from 2012.
- There are many hurdles to bring an LNG export terminal online, including commercialization, financing, federal and state permitting, environmental and safety reviews, legal challenges, and local zoning challenges. Only a portion of the projects planned will be constructed.
Given these factors, ACCF urges DOE to approve all pending applications for LNG export and let the market determine viability.