WASHINGTON — Energy Secretary Jennifer Granholm urged caution regarding new natural gas export terminals, warning that “unfettered exports” of liquefied natural gas (LNG) could raise domestic prices and contribute to greenhouse gas emissions. Her comments were made during the recent release of a pivotal Energy Department study analyzing the environmental and economic impacts of natural gas exports.
The report highlighted that the U.S. LNG shipments reportedly increase domestic wholesale prices while reducing reliance on renewable energy sources, like wind and solar. As LNG exports rise, there is also a likelihood of escalating global greenhouse gas emissions despite advancements in carbon capture technology.
“Unregulated LNG exports could raise wholesale domestic natural gas prices by over 30%, resulting in an additional $100 cost per household annually by 2050,” Granholm stated. She emphasized that the recent surge in energy prices, exacerbated by the COVID-19 pandemic, underscores the potential challenges families could face if export-driven price increases occur.
“Today’s publication reinforces that a business-as-usual approach to LNG exports is neither sustainable nor advisable,” Granholm continued. The study follows a pause initiated by the Biden administration on new LNG project approvals in January, aimed at assessing the environmental fallout from LNG exports. Methane, emitted during natural gas extraction and usage, is notably a potent greenhouse gas.
Despite the pause, which is currently in effect due to a federal court order, the Energy Department has stated it will hold off on making decisions regarding two major LNG export projects in Louisiana until environmental reviews are complete.
Granholm’s comments pose a challenge for the incoming administration, which has indicated its intention to resume LNG project approvals. Following the recent study, advocates for both industry and environmental protections are readying for potential legal battles over future LNG export projects.
The American Gas Association criticized the Biden administration’s suspension of LNG projects, claiming it adds uncertainty to both the global energy market and the U.S. allies relying on energy imports. “This report is an unjustifiable attempt to rationalize their detrimental policy error,” stated AGA president and CEO Karen Harbert, who also emphasized the need for speedy approvals for essential energy supplies.
A separate analysis by S&P Global suggests that expanded LNG exports could create nearly half a million jobs and add $1.3 trillion to the U.S. GDP by 2040, projecting a doubling of U.S. LNG export capacity in the next five years with minimal impact on domestic prices.
Environmental groups have pointed to the new study as evidence that accelerating LNG exports poses significant risks to climate, public health, and economic stability. Activists have called for a rejection of pending LNG projects, linking them to potential environmental and public health crises.
