Center for Liquefied Natural Gas welcomed U.S. Energy Information Administration’s report on LNG exports, which was requested by the U.S. Department of Energy.
While only the first chapter in a much wider macro-economic analysis, it demonstrates the economic benefits that increased exports of LNG will deliver for the United States.
The study is an update to the EIA’s original 2012 report and is aimed at providing an analysis of the “outer envelope” of potential LNG exports, considering three scenarios; shipment of 12, 16 and 20 billion standard cubic feet (Bcf) per day phased in at 2 Bcf per day per year starting in 2015; a rate which EIA recognizes as “extremely aggressive, indeed almost impossible” to achieve.
EIA’s model does not take into account the wider economic benefits from increased exports, or the indirect benefits on energy intensive industries due to increased ethane and propane production. These will undoubtedly be factored into the second chapter, which will provide a macro-economic perspective.
CLNG President Bill Cooper said, “While we must wait for the macro-economic report to be released for the complete picture, EIA’s report evidences economic benefits to the United States with only modest potential consumer price increases by the year 2040.”
He further said that, while EIA modeled the export numbers provided by DOE, EIA noted that it stands by its projections of peak LNG exports reaching by 2030 being substantially less than the DOE inputs.
“We are confident that the updated macro-economic study will be an enhancement to the previous macro-economic study commissioned by DOE once again establishing positive economic gains for the country because of LNG exports, re-enforcing what numerous independent studies have already shown,” added Cooper.
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Press Release; Image: CLNG