Wednesday, October 24, 2012

LNG Application Summary

I knew there were a bunch of applications pending to export liquefied natural gas (LNG) from the U.S., but I didn't realize the number had reached 19.  LNG Global posts a weekly summary of the projects.  Here is the link for this week, also pasted below:

As you probably already know, only Cheniere Energy (Sabine Pass Liquefaction, LLC) has received approval to export gas to countries with which the U.S. does not have a free trade agreement and that no other applications will be considered until the DOE completes a market impact study, due at the end of the year.

The issue is surprisingly controversial with an odd combination of opponents, including environmentalists, industrial gas consumers and would-be free market advocates like the Koch Brothers.  You know who is missing from the conversation?  Coal miners.  They should be all over supporting this like white on rice (or rather black on coal).  Exporting LNG would help keep a floor under gas prices that should make it more expensive than coal for utilities to burn.  They are fools to stay silent, fools I tell you!


Steve said...

If the coal miners should support it why are the Koch brothers opponents?

Robert Hutchinson said...

The Koch boys have their tentacles in many businesses, but several of them in chemicals and manufacturing profit nicely from cheap natural gas. LNG export would serve to raise gas prices.