1. Industry fears LNG exports rise will hit US
By Ed Crooks in New York
©Bloomberg
America’s Energy Advantage is calling for a ‘balanced’ approach as concerns
mount over a rise in US gas prices if supplies tighten
Tens of billions of dollars of potential investment in US industry are at risk if
the government allows a large increase in natural gas exports, a group of
manufacturers has warned.
America’s Energy Advantage, a group backed by six large industrial companies
including Dow Chemical, Huntsman and Alcoa, argues that exporting
liquefied natural gas threatens to damage jobs and investment in US
manufacturing by driving up the price of gas in the US.
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It is calling for a “balanced” approach, with only a few more plants given
permits to sell LNG freely around the world.
The call to rein in plans for LNG exports comes on the same day that Cheniere
Energy Partners announced it had signed up Centrica of the UK as its sixth
biggest overseas customer for US shale gas exports, subject to regulatory
approval.
UK prime minister David Cameron welcomed the export plan, saying it would
“provide British consumers with a new long-term, secure and affordable
source of fuel.”
The pressure on the US administration contrasts with rising demand from
consumers in Asia and Europe who want to secure further supplies of
relatively low-cost US gas.
However, the Center for LNG, a gas industry group, argues that limiting the
numbers of export permits would be unjustified government interference in
energy markets.
US gas export ambitions are coming into conflict with hopes that the
revolution in oil and gas production will help drive a wider renaissance in the
country’s manufacturing through the availability of cheap energy.
Dow calculated that $100bn of new investment in the US is planned to take
advantage of the cheap natural gas unlocked by the shale boom. However, it
argues that many of those projects, particularly large inward investments by
foreign companies, would be at risk if the administration grants permits for
unrestricted exports.
George Biltz of Dow said allowing many more long-term supply contracts with
foreign buyers would stoke fears about a possible sharp rise in US gas prices if
supplies tighten.
“Too much too fast will scare away those investors,” he said.
So far, the administration has awarded only one permit for LNG exports to
countries with which the US does not have a free-trade agreement, but 16
more applications have been filed.
A study commissioned by the Department of Energy argued last year that even
unlimited LNG exports would have only a relatively modest effect on US gas
prices, and said it would move to evaluating export licence applications on a
case-by-case basis. Since then, no more licences have been issued.

3. Bill Cooper of the Center for LNG said the abundance of US shale reserves
meant supply shortages were unlikely. “We’ve got enough natural gas to allow
us to meet domestic needs way into the future, and still have some left to
export,” he said.
Supporters of LNG exports are also stepping up the pressure on the
administration. A letter urging it to “advance without delay . . . toward
approval of export permits” for worldwide LNG sales was signed by 110
members of Congress.
Not every chemicals company is opposed to increased LNG exports.
ExxonMobil, for example, has a large chemicals business as well as being the
largest US gas producer and an investor in a planned gas liquefaction plant.
Steve Pryor, president of ExxonMobil’s chemicals business, said: “Why should
the US government discriminate between an LNG project to liquefy natural
gas and a chemical plant to solidify it into plastic pellets? Both create
investment, both create thousands of jobs.”