LNG-for-Export

February Evening Light, Susquehanna
Brian Keeler Studio, www.briankeeler.com

Gas export volumes now equal about 20% of our domestic production and are predicted to grow.  
 

How did we get to this place? As United States became “energy independent,” gas producers needed new markets.  Oil and gas interests prevailed among politicians and succeeded in getting President Obama to lift a 40-year-old ban on oil and gas exports. That, along with the ease of production brought about by hydraulic fracturing (fracking) led to a net export balance for gas by 2016.  Who has benefited? Answer: Oil & gas interests. Who suffers? Answer: The global climate, people living near gas and LNG infrastructure, and domestic gas consumers.  

U.S. natural gas production exceeded domestic consumption 2017 through 2022. This surplus contributed to increased exports and to the United States becoming a natural gas net exporter from 2017 through 2022.    https://www.eia.gov/energyexplained/natural-gas/imports-and-exports.php#:~:text=Natural%20gas%20exports%20reached%20a%20record%20high%20in%202022,)%E2%80%94the%20highest%20on%20record

LNG exports from the United States have steadily grown since 2016, when the first liquefaction unit—or “train”—at Sabine Pass in Louisiana entered service. Following several years of LNG capacity additions, the United States became the world’s largest LNG exporter during the first half of 2022, when U.S. LNG exports averaged about 12% of the dry natural gas produced in the United States.   https://www.eia.gov/outlooks/aeo/IIF_LNG/

The United States exported more natural gas in the first half of 2023 than it did in the same period of any previous year. Natural gas exports averaged 20.4 billion cubic feet per day (Bcf/d).  https://www.eia.gov/todayinenergy/detail.php?id=60582

U.S. dry natural gas production in the Lower 48 states reached an all-time monthly high of 105.5 billion cubic feet per day (Bcf/d) in December 2023.  https://www.eia.gov/todayinenergy/detail.php?id=61263

Gas demand is predicted to slow in mature markets. Overall gas consumption across the mature markets of Asia Pacific, Europe and North America peaked in 2021 and is set to decline over the medium term as a result of the rapid deployment of renewables and improved energy efficiency standards. https://www.iea.org/reports/medium-term-gas-report-2023

For 2023, 88.2% of total LNG exports went to non-Free-Trade-Agreement countries, while the remaining 11.8% went to Free-Trade- Agreement countries.  https://www.energy.gov/sites/default/files/2023-12/Natural%20Gas%20Imports%20and%20Exports%20Monthly%20October%202023.pdf

Gas traders and resellers driving much LNG demand. Decreasing demand in mature markets across the world – a collection of countries that represents almost half of global gas consumption – means that growth will be highly concentrated in fast-growing Asian markets as well as some gas-rich economies in the Middle East and Africa. China alone is expected to account for almost half of the total growth in global gas demand between 2022 and 2026, drawing on the fuel to serve its industrial production, power sector and urban areas.
https://www.iea.org/news/after-peak-in-mature-markets-global-gas-demand-is-set-for-slower-growth-in-coming-years

Global top 15 LNG Companies. September 2023.  https://www.blackridgeresearch.com/blog/list-of-global-top-liquefied-natural-gas-lng-companies-manufacturers-producers-operators-suppliers-in-the-world

LNG export boom is incompatible with climate goals.

This topic is discussed on the page, A Vision For a Better Future.

Concern grows over LNG exports.

As far back as 2020, it was recognized that LNG exports are a climate threat.  December 08, 2020.  Increasing overseas exports of liquefied natural gas (LNG), far from being the climate-friendly replacement for dirtier fossil fuels touted by the gas industry, will make it more difficult for both the U.S. and importing countries to reduce greenhouse gas (GHG) emissions. In fact, “locking in” this fossil fuel for the coming decades could make it impossible to limit global warming to 1.5 degrees Celsius.”   https://www.nrdc.org/experts/christina-swanson/liquefied-natural-gas-exports-are-climate-threat

Report explores the limitations of DOE and FERC permitting of LNG facilities, with focus on climate and environmental justice considerations. August 2022. The Public Interest  Review for LNG-Related  Authorizations
https://policyintegrity.org/files/publications/LNG_Related_Authorizations_Report_-_vF.pdf

Consumer advocates write to Secretary Granholm in 2022, urging update to the “public interest” standard.
“LNG exports are driving Americans’ home heating costs to record highs, and planned expansions of LNG-export infrastructure would put the U.S. on a path toward continued fossil-fuel extraction and surging greenhouse gas emissions. Biden’s DOE should take a sharp look at how LNG exports affect the American public… …The executive branch of the federal government has the power to approve or deny LNG exports to most countries under the 1938 Natural Gas Act, which states that exports should be “consistent with the public interest.” “Allowing U.S. Exporters and Traders to Price Gouge Undermines Global Energy Security.”  
https://www.canarymedia.com/articles/fossil-fuels/lng-exports-hurt-americans-its-time-for-the-biden-admin-to-take-action

Report Exposes the Fossil Fuel Industry’s Exploitation of Russia’s War in Ukraine, Calls on Biden Admin to Act.  February 22, 2023.  “The industry and some federal officials tout the misleading claim that LNG exports support European security against Russia. But more than three-quarters of the exports under these contracts would go to the Asia-Pacific region or Big Oil companies and commodity trading firms that send fuel to where it can fetch the highest price. “  “The report calls on President Biden to overhaul the Department of Energy’s procedures for granting LNG export permits to better consider climate, consumer and community harm.”
https://www.citizen.org/news/liquefied-natural-cash-new-report-exposes-the-fossil-fuel-industrys-exploitation-of-russias-war-in-ukraine-calls-on-biden-admin-to-act/

Members of Congress write to Department of Energy: New liquefied fossil gas licenses not in the public’s interest. Nov. 14, 2023. Oregon’s U.S. Senator Jeff Merkley, along with Representatives Jared Huffman (D-CA-02), Nanette Barragán (D-CA-44), and Jennifer McClellan (D-VA-04), sent a bicameral letter along with over 60 of their colleagues to the U.S. Department of Energy (DOE) urging the agency to update how it determines if new licenses for liquefied natural gas (LNG) exports to non-free-U.S. trade countries are in the public interest. The letter highlights concerns that DOE’s current approach to making these determinations does not fully or accurately consider how these exports impact the climate, environmental justice, or domestic energy prices.
https://www.merkley.senate.gov/wp-content/uploads/2023/11/23.11.14-DOE-LNG-Letter.pdf

In December 2023, 170 scientists wrote to President Biden urging a pause on LNG permitting.
https://www.foodandwaterwatch.org/wp-content/uploads/2023/12/Scientists-CP2-Letter-Final.pdf

On January 26, 2024, Biden-⁠Harris Administration Announces Temporary Pause on Pending Approvals of Liquefied Natural Gas Exports to non-free-trade-agreement countries.  https://www.whitehouse.gov/briefing-room/statements-releases/2024/01/26/fact-sheet-biden-harris-administration-announces-temporary-pause-on-pending-approvals-of-liquefied-natural-gas-exports/

Deputy Secretary of U.S. Department of Energy testifies to Senate committee.
https://www.energy.senate.gov/services/files/12C4B00D-BFF3-4D11-9CD7-E462B156BF61

Exports and your costs for gas and electric

America’s gas export surge forced U.S. consumers to compete with overseas buyers, pushing U.S. natural gas prices to their highest levels in well over a decade.” June 2023
https://ieefa.org/resources/rio-grande-lng-project-could-raise-us-gas-prices-and-add-looming-global-glut

United States LNG exports have raised natural gas prices for U.S. households. November 2023.  
https://ieefa.org/resources/lng-exports-have-raised-natural-gas-prices-us-households 

The LNG export boom as created price volatility for US gas consumers, as the price of gas has been driven by worldwide commodity prices. https://www.citizen.org/wp-content/uploads/LNG-Consumer-Cost-Fact-Sheet-09.11.23.pdf

Analysts have said they expect prices to climb in coming years as demand for the fuel grows as new LNG export plants enter service in the U.S., Canada and Mexico. https://www.reuters.com/business/energy/us-natgas-prices-up-1-higher-demand-record-lng-feedgas-2023-12-13/

LNG Exports Raise Natural Gas Prices for Americans. Nov. 5, 2023.  U.S. export terminals for liquified natural gas (LNG) are turning what was once a domestic energy source into an internationally traded commodity, exposing American households and businesses to higher natural gas prices set on a volatile global market.
https://www.americanprogress.org/article/lng-exports-raise-natural-gas-prices-for-americans/#:~:text=(see%20Figure%202)%20As%20of,as%2033%20percent%20by%202035

Global call for United States to change course on LNG at COP28 climate talks. December 7, 2023
300+ groups demand Biden stop new permits and dirty diplomacy
https://foe.org/news/biden-lng-cop28-climate/

Completing Pending LNG Export Projects Could Raise Natural Gas Prices for Americans by 9 to 14 Percent. February 2024. https://energyinnovation.org/wp-content/uploads/2024/02/Consumer-Cost-Impact-Of-Completing-Pending-LNG-Export-Projects_2.2.24-1.pdf

Industrial Energy Consumers of America advocate studying the public-interest policies related to LNG exports, because of their recognition of the impact of LNG exports on the reliability and prices of domestic gas and electricity.
https://www.ieca-us.com/wp-content/uploads/02.07.24_Comments-for-the-Record_Senate-ENR-LNG-Hearing.pdf

LNG exports are an injustice

Frontline communities are sacrificed. LNG terminals have huge impacts on local communities through air pollution, explosion risks, and effects on fisheries.  March 20, 2023.
https://lailluminator.com/2023/03/20/sacrifice-zone-gulf-coast-helps-meet-global-natural-gas-needs-but-at-what-cost/

LNG export forces pipelines, using eminent domain, on landholders. The purpose of today’s pipeline expansions is to flow more gas to LNG export locations.  For example, The MVP would connect with the Transco pipeline system, which can carry gas to LNG export terminals in the Gulf Coast. The Federal Energy Regulatory Commission (FERC) did not directly evaluate the market need for the MVP. Instead, it relied on the existence of shipping contracts even though—as IEEFA has noted— four of the five shippers were corporate affiliates of the project’s sponsors.  May 30, 2023
https://ieefa.org/resources/mountain-valley-pipeline-debt-deal-undercuts-us-governing-values

The Bullard Center has for years been demanding action and justice for Gulf Coast communities that experience environmental racism and discrimination at the hands of the fossil fuel industry. Jan. 26, 2024.
https://www.bullardcenter.org/press-release/bullard-center-for-environmental-and-climate-justice-responds-to-biden-administration-announcement-to-pause-new-lng-export-approvals

According to a poll conducted in November 2023, prior to Biden’s decision, voters support a pause in LNG exports. The poll, conducted by Data for Progress, found that 62% of likely voters supported pausing approvals for new LNG export facilities. The poll also found that 60% of likely voters support ​“taking measures to limit the amount of natural gas America exports to other countries.”   
https://www.canarymedia.com/articles/liquefied-natural-gas/chart-how-do-voters-feel-about-us-lng-exports