Trump LNG export policy sparks clash between big energy users and gas industry

Trump LNG export policy sparks clash between big energy users and gas industry

Large energy consumers should come into conflict with the natural gas industry over President Trump’s plan to increase LNG exports as part of its “energy dominance” plan in favor of growth.

Trump and key cabinet officials have made increasing LNG exports a central issue on the agenda of the United States energy administration during the “Energy Week” before the July 4 vacation. Trump said he wanted the nation in an age where power mastery is autonomous and capable of exporting.

However, large energy users warn against the administration that they deliver more natural gas abroad is problematic for the growth of companies and jobs nationwide, and ultimately could hurt the economic President agenda.

“Excess LNG Export approvals by the United States Department of Energy in countries where the United States did not have free trade agreement, does not comply with US policy Prime Minister and” fair trade “President Trump and constitute A major long-term threat in industries competitiveness and employment exposed to intense energy trade, “said Paul Cicio, president of America’s Industrial Energy Consumers, on Wednesday a letter to Energy and Commerce Secretaries Rick Perry And Wilbur Ross, respectively.

The Cicio group represents large industrial energy users such as the chemical and steel industries, in which natural gas is a key product. Its members want to ensure that the supply of natural gas remains stable and the price is low.

The letter was sent ahead of Thursday’s Energy Trump address to end Energy Week, in which he underscored that the United States has become self-sufficient in natural gas production. The rise of natural gas schists made the US A major producer of gaseous fossil fuels, and federal government projects that the United States would become a net exporter by the end of the decade.

But Cicio injects doubts about supplies that continue indefinitely. The 100-year supply of natural gas is a “myth,” if the rate of natural gas to be exported is reached, argued in the letter, citing recent projections of Energy Information that support that 12 billion cubic feet Per day natural gas exports up to 2050.

One of the major export terminals in Louisiana operates for this day, but another six facilities must be open for the next three years. All LNG terminals must be authorized by the Department of Energy before exports can begin.

Projection “shows that 56 percent of all natural gas resources are consumed within this period,” Cicio wrote. “For companies that build facilities to last 50 years or more, it is very worrying.”

However, for LNG and natural gas industry drillers, these claims are no longer relevant, said Charlie Riedl, executive director of the Liquefied Natural Gas Center. Citi’s arguments are even more disconcerting given that exports are based on a surplus of natural gas that will not reduce supplies to manufacturers, Riedl said.

“What we are talking about exporting is still a surplus of gas, which is the projected plan ahead,” said M. Riedl. “The administration seems to understand that, and I think it works very well with US policy first.”

Riedl said the Trump administration “understands we have enough supply,” while sufficient infrastructure is available “to supply gas to manufacturing states like Michigan, Ohio, Indiana and the Midwest where there is so much manufacturing.”

In addition, natural gas prices fell to about $ 3 per unit and the price is “expect to stay flat,” he said. Most midwest manufacturers are close enough to the shale gas regions in Ohio and Pennsylvania, “buying cheap gas at these facilities will not change with the export of gas to other countries.”

Riedl also stressed that the administration has consulted with some of the largest users of natural gas, such as chemical giant Dow, who told Commerce Secretary Wilbur Ross in May that he had no problem with increasing LNG exports. There are ten years or six years, Dow has been one of the main criticisms of LNG exports, he said.

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