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APGA opposes LNG export legislation

LNG Industry,

APGA has sent a letter to Senators Barrasso, Hoeven, McCain and Murkowski to express opposition to their legislation, the North Atlantic Energy Security Act.

While the legislation would expedite natural gas production on federal lands, the bill would also expand LNG export capabilities to Ukraine, Japan, and NATO member states, none of which have free trade agreements with the US.

APGA highlighted that any expansion of LNG exports will raise domestic gas prices on manufacturers, households, and utilities, and there is no guarantee that any exported LNG will be sold to the nations that the legislation is targeting because US gas will be sold where the price is highest, not where politicians want it to be sold.

A number of studies have shown that exporting LNG from the US will raise the domestic cost of natural gas on homes and businesses. APGA believes that consumers should not be subjected to high energy prices and price volatility. Extreme weather during the winter of 2014 highlighted the crucial need to keep US energy resources available and affordable for US citizens. If all facilities were constructed, daily domestic production of natural gas would have to increase by 55% in order to meet export demands and keep natural gas prices at their current levels.

A copy of the letter can be found here.

Adapted from press release by Katie Woodward

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