Executive Briefings

Manufacturers Call for Pause on U.S. LNG Export Permits

The Industrial Energy Consumers of America (IECA) has warned that the United States is set to use up 60 to 70 percent of its natural gas reserves by 2050 if all permitted LNG export terminals are built out.

IECA represents manufacturers from all levels of the supply chain, with combined annual turnover of $1tr, and and many of its members are major gas consumers. The association is a supporter of the "all-of-the-above" approach to energy development, including oil, gas, coal, nuclear and renewables.

Despite its pro-energy stance, however, it does not support increased gas exports. Last week, IECA called on the Department of Energy to halt further permit approvals for exports to non-free trade agreement countries until the agency reviews its application procedures. The group asserts that these overseas shipments are "inconsistent with President Trump's fair-trade and 'America First'" policies.  

Last year, industrial users consumed about a quarter of America's domestic natural gas production. IECA is concerned that under the permitting policies of the Obama administration, the cumulative volume of future, permitted LNG projects grew too high, reaching fully 70 percent of today's total domestic demand — leaving less for industrial consumers.

Rising exports also mean rising domestic prices, warns IECA — more than double the current level by 2025, according to forecasts by the Energy Information Administration. Higher gas prices mean higher input costs, reducing the incentive for manufacturers to expand.

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IECA represents manufacturers from all levels of the supply chain, with combined annual turnover of $1tr, and and many of its members are major gas consumers. The association is a supporter of the "all-of-the-above" approach to energy development, including oil, gas, coal, nuclear and renewables.

Despite its pro-energy stance, however, it does not support increased gas exports. Last week, IECA called on the Department of Energy to halt further permit approvals for exports to non-free trade agreement countries until the agency reviews its application procedures. The group asserts that these overseas shipments are "inconsistent with President Trump's fair-trade and 'America First'" policies.  

Last year, industrial users consumed about a quarter of America's domestic natural gas production. IECA is concerned that under the permitting policies of the Obama administration, the cumulative volume of future, permitted LNG projects grew too high, reaching fully 70 percent of today's total domestic demand — leaving less for industrial consumers.

Rising exports also mean rising domestic prices, warns IECA — more than double the current level by 2025, according to forecasts by the Energy Information Administration. Higher gas prices mean higher input costs, reducing the incentive for manufacturers to expand.

Read Full Article