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APGA opposes LNG export legislation

Hydrocarbon Engineering,

The APGA sent a letter to Senators Barrasso, Hoeven, McCain and Murkowski on 30 July expressing opposition to the North Atlantic Security Act. APGA has said that while the legislation would expedite natural gas production on federal lands, the bill would also expand LNG capabilities to the Ukraine, Japan and NATO member states, none of which have free trade agreements with the US.

In the letter, the APGA pointed out that any increase in LNG exports will raise domestic gas prices for 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 US gas will be sold where the price is highest, not where politicians want it to go.

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

The letter also reportedly pointed 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 US citizens. The US should focus on exporting technology and best practices to foreign allies to help them free from their dependence on natural gas from hostile nations.

Adapted from press release by Claira Lloyd

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