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

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

August 23, 2017
Maritime Executive

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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Global Trade Management Global Supply Chain Management Sustainability & Corporate Social Responsibility Regulation & Compliance Chemicals & Energy Industrial Manufacturing North America
KEYWORDS Chemicals & Energy Global Supply Chain Management Global Trade Management Industrial Manufacturing North America Regulation & Compliance sustainability
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