The Center for Liquefied Natural Gas (CLNG) has welcomed US Energy Information Administration’s (EIA) report on LNG exports, which was requested by the US Department of Energy (DoE). While only the first chapter in a much wider macroeconomic analysis, CLNG holds that it further demonstrates the economic benefits that increased exports of LNG will deliver for the US.
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 ft3/d phased in at 2 billion ft3/y starting in 2013; 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 macroeconomic perspective.
CLNG President Bill Cooper commented on the announcement: “While we must wait for the macroeconomic report to be released for the complete picture, EIA’s report evidences economic benefits to the US with only modest potential consumer price increases by the year 2040.
“Further, 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 macroeconomic study will be an enhancement to the previous macroeconomic study commissioned by DOE once again establishing positive economic gains for the country because of LNG exports, reinforcing what numerous independent studies have already shown”.
Adapted from a press release by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/31102014/clng-welcomes-lng-export-study-1552/