Exports of liquefied natural gas (LNG) from Dominion Cove Point
LNG LPs planned Cove Point terminal in Calvert County,
Md., to countries without a free-trade agreement with the
United States could end up impacting Americas private and
industrial consumers, Americas Energy Advantage (AEA) has
The Department of
Energy approved export licenses for the facility this past week
amm.com, Sept. 12).
"We are now
approaching a volume of LNG exports that many experts project
will impact price and volatility for natural gas," Jennifer
Diggins, director of public affairs at Charlotte, N.C.-based
Nucor Corp. and chair of AEA, said in a statement.
The organizationwhich also includes Pittsburgh-based
aluminum producer Alcoa Inc. and Midland, Mich.-based chemical
maker Dow Chemical Co.also takes
issue with the agencys approval process.
increasingly concerned with the process and data (the Energy
Department) is using to justify more exports of American
natural gas to our global competitors," Diggins said.
The agency is basing
its decisions for the export licenses on "30-year-old
guidelines for natural gas imports, not exports," she said,
adding that the approval process should be as up-to-date as
possible as the decisions could have "far-reaching and
potentially irreversible impacts on our economy and American
To this end, AEA is
calling for a review of the agencys export decisions and
for clarification of its guidelines for approvals, Diggins
The agency must
approve all LNG exports to non-free-trade agreement
represented by AEA are concerned that increasing LNG exports
will drive natural gas costs up for consumers and industrial
users, and in the process stifle a budding American
The growth in natural
gas supply has led to lower electricity costs for domestic
producers like Alcoa and increased their negotiating power with
electricity providers (
amm.com, May 6).