NEW YORK A nonprofit
group that includes major U.S. steel and metal producers has
reiterated its warning that further exports of natural gas
should be monitored carefully in light of a deal between
Houston-based Cheniere Energy Partners LP and British firm
"We continue to urge the federal
government to move cautiously on permitting additional natural
gas exports in order to measure impact on price, security and
jobs," Americas Energy Advantage said in an e-mail.
Under the 20-year contract,
Cheniere will supply Windsor, England-based Centrica with 1.75
million tonnes of liquefied natural gas (LNG) annually, with
the possibility of a 10-year contract extension (
amm.com, March 26).
Americas Energy Advantage,
which includes Charlotte, N.C.-based steelmaker Nucor Corp. and
Pittsburgh-based Alcoa Inc., sees the domestic natural gas boom
as key to a resurgence in the U.S. manufacturing sector.
"Americas Energy Advantage
believes in supporting the natural gas advantage that has made
the U.S. manufacturing sector more competitive, which has
created jobs, spurred capital investment and increased exports
of value-added products," the organization said.
On its website, the group cites
a recent study by Boston-based consulting firm Charles River
Associates stating that domestic natural gas prices could
increase threefold by 2030 under a "high-export scenario,"
which the group says could have dire consequences for the
domestic manufacturing sector. "In all, $90 billion of
gas-intensive investment in manufacturing could be on the
However, producers of energy
tubulars and such organizations as the American Petroleum
Institute have widely touted LNG exports as a boon for the
country as they are expected to increase prices and spur
amm.com, Feb. 4).
Cheniere expects European demand
for LNG imports to reach 87 million tonnes in 2015 and climb to
123 million tonnes annually by 2020 and 152 million tonnes by
2030, according to a company presentation. Asian demand is
expected to grow even faster, reaching 192 million tonnes in
2015, 242 million tonnes annually by 2020 and 310 million
tonnes by 2030.
In addition to deals with three
British energy companies, Cheniere has signed LNG supply deals
with Indian, South Korean and Spanish gas suppliers, according
to the presentation.
The first two LNG trains at
Chenieres Sabine Pass terminal in Louisiana are expected
to start up in early 2016.