Page 4 - GLNG Week 38 2021

GLNG COMMENTARY GLNG

US manufacturers call for

restrictions on LNG exports

The expansion in US LNG exports is putting the squeeze on domestic industry,
IECA has warned

US A major trade group in the US has urged the have hindered the export of their products. But
government to take steps to curtail the coun- at the same time, IECA’s members also rely on
WHAT: try’s LNG exports, warning of high domestic cheap gas to ensure sufficient margins, and this
IECA has called for prices and potentially shortages later this year. has led the group to adopt a somewhat contra-
restrictions on LNG The request revives a decade-long dispute over dictory position.
exports and a freeze on the economic benefits of rising LNG exports Concerns that a surge in LNG exports could
new project permitting. and the impact that they have on the domestic harm domestic manufacturing are not new.
industry that depends on low-cost gas for power Back in 2013, then CEO of Dow, Andrew Liv-
WHY: and feedstock. eris, warned in a speech to the Senate Energy and
The trade body has Industrial Energy Consumers of Amer- Natural Resources Committee that “unchecked
warned of high gas prices ica (IECA), representing chemical, food and LNG export licensing can cause demand shocks,
and potentially shortages materials manufacturers with some $1 trillion and the resulting price volatility can have sub-
this winter, undermining in combined annual sales, warned in a letter to stantial adverse impacts on US manufacturing
the margins of domestic US Energy Secretary Jennifer Granholm that and competitiveness.”
industry. “US consumers, the health of the economy and Back then the US LNG industry was still at
national security should take priority over LNG a nascent stage of development. But since the
WHAT NEXT: export profits.” country launched exports of the super-cooled
Depending on how The government should also put a freeze gas in 2016, the number of projects in the pipe-
tight the market gets, on new project permitting in the US Lower 48 line has ballooned significantly.
the government could states, and carry out a review into whether these The US already has 11.1bn cubic feet per day
impose some temporary initiatives are in the public interest, IECA said. (115bn cubic metres per year) of LNG capacity
measures to stem LNG “We are certain they are not,” it said. in operation, and a further 87 bcm of approved
exports. But significant projects that are already under construction.
changes in legislation are Hurting other economic sectors IECA is seeking a freeze on an additional 247
unlikely. Many of IECA’s members are involved in the bcm of capacity that has been approved but is
US chemicals industry, which has long been an not yet under construction, along with 31 bcm
advocate of free trade, seeking the removal of proposed with applications pending and 56.8
tariffs, subsidies and other barriers to trade that bcm still at the prefilling state.

P4 www. NEWSBASE .com Week 38 24•September•2021