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LNG exports debate

LNG Industry,

Senator Wyden and Congressman Markey have sent a letter to President Obama urging him to develop a policy that addresses the export of natural gas and other energy exports. The American Public Gas Association has met with both of the above offices several times to discuss the issue of LNG export and worked with the offices to develop legislation that addresses the LNG export issue.


The letter sent on 31st May 2012 says that the total amount that is in current export applications would equate to 26% of the daily consumption and that four key rules should guide whether LNG exports are in the national interest:

  • National security.
  • Energy security. 
  • Economic impacts. 
  • Environmental protection.

The letter urges Obama to adopt rules and policies that govern energy exports through authority provided to him by the Energy Policy and Conservation Act of 1975.


LNG export

The APGA opposes large scale export of natural gas via LNG. The APGA believe exporting significant quantities of domestic natural gas will have adverse implications for domestic consumers of natural gas, US energy supply and national security. The association have also said that export of LNG will play havoc with the current supply and demand balance. Also, as the price of LNG is tied to the international oil market, the continuous export will link the domestic price of natural gas to the international oil markets, which are substantially more volatile and less transparent than the US domestic market alone. The increase in the price of domestic natural gas will be to the detriment of American consumers and will dampen efforts to broaden the use of natural gas to displace foreign oil.

It has been said that it is extremely unlikely for legislation addressing this issue to pass Congress, however, the issue is likely to continue to receive attention from policymakers.

Adapted from a press release by Claira Lloyd

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