NEW YORK The United States vast supply of natural gas makes exporting liquefied natural gas (LNG) a "clear choice," according to Americas Natural Gas Alliance (ANGA).
"With this game-changing opportunity, selling natural gas into the global market will improve the U.S. trade balance, deliver jobs here at home and help the President achieve his goal of doubling all exports," ANGA president and chief executive officer Marty Durbin testified May 21 before the Senate Energy and Natural Resources Committee.
He said that his association, which represents 26 large natural gas producers, welcomed the U.S. Energy Departments recent decision to allow Houston-based Freeport LNG Development LP to export LNG to non-FTA (free-trade association) countries.
The agency determined "that (LNG) exports from (Freeports) terminal at a rate of up to 1.4 billion cubic feet of natural gas per day for a period of 20 years was not inconsistent with the public interest." It was the second such license granted since 2011.
The agency reiterated that it would continue considering each additional application for export to non-FTA countries on a case-by-case basis, a fact applauded by Americas Energy Advantage, a group that has encouraged government to move cautiously in permitting natural gas exports.
"This responsible process will decrease the chances of price shocks in energy markets and allow energy producers to export LNG and manufacturers and homeowners to enjoy access to competitively priced supplies of natural gas," said the group, whose members include Pittsburgh-based Alcoa Inc.
ANGA expects LNG exports to have little effect on domestic natural gas prices. "The Bipartisan Policy Center issued a report concluding that the United States has ample supplies to meet foreseeable electricity and industrial demand growth, and allow for exports without any significant impact on domestic prices," Durbin said.