On late Tuesday, the Biden administration released a study on the economic and environmental impacts from liquefied natural gas (LNG) exports. The study’s findings emphasize the need for a cautious approach to issuing new export permits.
This comes after President Biden paused LNG exports to major consumers in Asia and Europe in January.
Energy Secretary Jennifer Granholm stated that rising LNG exports could lead to higher greenhouse gas emissions and increased energy prices for US consumers.
The study includes various scenarios but concluded that the US has enough LNG to meet both domestic and global demand. However, without restrictions, domestic gas prices would rise by 31% in 2050, leading to an increase of over $100 a year in natural gas bills for US households, with regional variations.
Additionally, the study also found that Europe, despite being the top destination for US LNG since 2016 due to some region’s shift away from Russian gas, is now attempting to reduce fossil fuel use, including natural gas. As for Asia, demand for LNG is speculated to increase in most scenarios.
Nonetheless, S&P Global stated that U.S. LNG has contributed over $400 billion to the GDP over the past decade, supporting around 273,000 jobs, with an additional 495,000 jobs expected by 2040. LNG supporters argued that this year’s election has influenced the study.
Meanwhile, Donald Trump, a climate-change skeptic and strong supporter of fossil fuel development, has vowed to end the moratorium on new LNG export permits as soon as he returns to the Oval Office on January 20, 2025.
