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APGA opposes LNG export legislation

Hydrocarbon Engineering,

On 25 June, The American Public Gas Association (APGA) expressed concern to Chairman Landrieu of the Senate Committee on Energy and Natural Resources and Senator Udall in regards to their recently introduced legislation, the Natural Gas Export Promotion Act of 2014, which would expedite the export of LNG.

In the letter, APGA stated that: ‘The impact of exporting LNG is clear. As every study on the issue has shown, exporting LNG increases the domestic price of natural gas. This means that whether you are a homeowner, small business, or large industrial enterprise, exporting LNG increases the prices you pay for not just energy but also for all goods and services that have the cost of energy built into them’.

APGA holds that the Natural Gas Export Promotion Act will only exacerbate the price impact, as it will force the Department of Energy (DOE) to make a decision on whether or not an export application is in the public interest within 45 days. This shortened timeframe will arguably not allow DOE to conduct a thorough public interest determination on whether the application will harm US consumers, the economy or national security.

APGA continued: ‘Instead of exporting natural gas, Congress should adopt policies that encourage greater domestic demand for it and should put a greater emphasis on exporting drilling technology to other countries that have natural gas reserves. Rather than export gas, it is a much better choice to accelerate the transition in the United States from imported oil to domestic natural gas to fuel our transportation sector and revitalize our manufacturing industry.’

Edited from various sources by Emma McAleavey.

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