APGA opposes expedited LNG legislation

APGA sent a letter to Senators Barrasso, Hoeven, McCain and Murkowski to express opposition to their legislation, the North Atlantic Energy Security Act.

While the legislation would expedite natural gas production on federal lands, the bill would also expand liquefied natural gas (LNG) export capabilities to Ukraine, Japan, and NATO member states, none of which have free trade agreements with the U.S.

In its letter, APGA highlighted that any expansion of LNG exports will raise domestic gas prices on manufacturers, households, and utilities, and there is no guarantee that any exported LNG will be sold to the nations that the legislation is targeting because U.S. gas will be sold where the price is highest, not where politicians want it to be sold.

Study after study has shown that exporting any amount of LNG from the U.S. will raise the domestic cost of natural gas on homes and businesses. APGA believes that consumers should not be subjected to high energy prices and price volatility. The extreme weather during the winter of 2014 illustrated the crucial need to keep U.S. energy resources available and affordable for U.S. citizens. If all facilities were constructed, daily domestic production of natural gas would have to increase by 55 percent in order to meet export demands and keep natural gas prices at their current levels.

APGA’s letter also points out that foreign countries that have made the poor energy policy decision to prohibit advanced production techniques, or to simply not develop their own natural gas resources, should not be bailed out by U.S. citizens. The U.S. should focus on exporting technology and best practices to our foreign allies to help free them from their dependence on natural gas from hostile nations.

Press Release, August 8, 2014; Image: APGA