Chemical, Metals Manufacturers Call To Limit LNG Exports

LNG Ship Unloading at Terminal Photo Courtesy of www.lngoneworld.com/ FERC.gov image
The Department of Energy is reviewing applications for more than twenty new terminals to export liquefied natural gas, or LNG. A group of chemical and metals manufacturers is calling on the department to hit the brakes.

In a letter to Energy Secretary Ernest Moniz, the trade group America’s Energy Advantage argues that ramping up LNG exports at the current pace risks doubling domestic gas prices by 2016. Trent Duffy is a spokesman for the coalition.

“That’s going to have a real impact not just for consumers and their wallets but our overall economy and our chances for really a once-in-a-generation opportunity to regenerate American manufacturing.”

John Felmy is chief economist for the American Petroleum Institute, which represents natural gas producers. He says boosting foreign LNG sales is unlikely to cause prices to spike.

“We contracted with a firm called ICF International, and they looked at several different scenarios on it, and all of the scenarios show a relatively modest impact on price.”

Low natural gas prices are playing a major role in decisions by manufacturers to build new facilities in the U.S., rather than overseas.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...