Natural Gas Intelligence: 76% Increase In LNG Natural Gas Export Capacity Already Under Construction; US Group Fears Buildout Will Hurt American Businesses Urge ‘US Consumers First’ Policy

On February 12, Natural Gas Intelligence issued a special report saying US LNG natural gas export facility capacity will increase by 76% once facilities now under construction not affected by the Biden Administration’s new LNG facility permit freeze are completed.

NGI reported existing LNG export facility capacity is 14 billion cubic feet per day and LNG facilities permitted and under construction now represent another 10.7 billion cubic feet of capacity.  Read more here.

The report also noted the US Energy Information Administration projects “stronger pricing is predicted into 2025, as US LNG export capacity increases.”

This report is similar to a report on February 6 by the Environmental Integrity Project saying the Biden’s Administration’s pause on permits for new LNG facilities will not slow the flow of US natural gas abroad.  Read more here

On February 12, the US Energy Information Administration added more detail to these general numbers by saying three new LNG terminals will come online in the second half of 2024 and in 2025 totalling an additional 5.3 billion cubic feet per day of new LNG export capacity by the end of 2025.

“Our [EIA] forecast accounts for the recent U.S. Department of Energy (DOE) announcement to pause determinations on applications to export LNG to countries with which the United States does not have a free trade agreement. However, capacity additions through 2025 will not be affected because these projects have been fully authorized by DOE and are already under construction.”  Read more here.

In November, the EIA projected LNG export capacity from North America is likely to more than double through 2027 counting projects already under construction.  Read more here.

The EIA also reported growth in natural gas demand will be driven by domestic consumption in 2024 and then exports in 2025 and said natural gas prices at several price hubs in Europe and Asia remain relatively high compared to US prices.

On January 24, 2024, the Institute for Energy Economics and Financial Analysis released a new study documenting finding while the US builds new LNG natural gas export facilities, Europe reduces gas demand and diversifies energy sources.

“The U.S. continues to construct more LNG terminals; just taking into account projects that are currently being built, the country’s LNG export capacity in 2030 will be 76% higher than Europe’s forecasted demand for the super-chilled fuel in that year.”

The study concluded, “Now is the time to reevaluate the proposed LNG projects to reduce the risk of overinvestment.”  Read more here.

US Business Objections To LNG Expansion

The Environmental Integrity Project also reported a letter from the Industrial Energy Consumers of America on January 25 said the buildout of the LNG industry will have a big impact on consumer prices and hurt American business.

The industries said LNG exports “substantially contributed to the increase in the price of natural gas from $2.50 MMBtu to over $9.00 MMBtu and a corresponding increase in electricity prices nationally” during the winter of 2021-22 when demand resulting from the war in Ukraine drove up international prices.

“Spot prices for natural gas exceeded $600 on a regional basis. This run up in the price of natural gas and electricity cost U.S. consumers hundreds of billions of dollars.”

“All of the above have happened before and will happen again. It is just a question of time.”

“We urge you to put U.S. consumers first, not last, like it is today and put in place consumer safeguards.”

Click Here for a copy of their letter.

NewsClips - LNG:

-- Forbes: US Natural Gas Production Set New Record, But Don’t Expect Relief On Your Heating Bills [LNG Exports Link US To High Prices]  [Did We Forget?]

-- Forbes Guest Essay: US Natural Gas Prices Could Spike 14% Without Biden’s Pause On New LNG Export Terminal Permits Costing Consumers $18 Billion

-- AmericanProgress.com: LNG Exports Raise Natural Gas Prices For Americans

-- Energy Institute At Haas: What Can Futures Markets Tell Us About Biden’s LNG Pause?

-- WSJ: US Natural Gas Futures Extend Losses [2.12.24]

-- Reuters: European Union Says Biden’s Pause On Approvals Of New LNG Natural Gas Export Facilities Will Have No Effect On US LNG Supplies To Europe Over Next 2 or 3 Years  [LNG Exports Are Expected To Double By 2030 On Already-Approved Projects] 

-- Environmental Integrity Project: Biden’s Pause In New Permits For LNG Natural Gas Facilities Won’t Slow The Flow Of US Natural Gas Abroad 

-- Markets Insider: New Study Questions LNG Natural Gas As A ‘Bridge Fuel’ In Decarbonization

-- Institute for Energy Economics & Financial Analysis: As US Builds New LNG Export Terminals, Europe Reduce Gas Demand, Diversifies Energy Sources

Related Articles - LNG In PA:

-- PA Utility Law Project, Public Citizen Host Feb. 16 Webinar Exploring The Impact Of LNG Natural Gas Exports On Pennsylvania Families  [PaEN]

-- 150+ Residents Of Chester Opposed To An LNG Natural Gas Export Facility Proposed In Their Community Let Their Feelings Be Known To The House Philadelphia LNG Export Task Force  [PaEN]

-- Philadelphia LNG Export Task Force Issues Report On The Best Ways To Increase Exports Of PA's Natural Gas; Minority Report Rebuts Need For LNG Facility, Outlines Impacts   [PaEN]

-- NRDC: U.S. Dept. Of Transportation Denies Special Permit For Shipping LNG Natural Gas By Rail From A Proposed Bradford County LNG Plant; Shipping By Truck Still Allowed   [PaEN]

-- Marcellus Drilling News: New Fortress Energy Reapplying For Wyalusing LNG Natural Gas Plant Permits In Bradford County

-- Scranton Times Editorial: Local Leaders, DOT Must Stop Plant In Wyalusing, Bradford County From Shipping LNG Natural Gas By Rail Or Truck Or Both To Philadelphia  [PaEN]

-- WHYY: Environmentalists Decry DRBC Permit Extension Approval For LNG Natural Gas Terminal In South Jersey To Export PA Natural Gas   [PaEN]

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - Feb. 10 to 16 - 31 More Conventional Abandoned Well NOVs - 103 For Year; Pipeline Land Slips; Water Supply, Stray Gas Complaints [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - February 17 [PaEN]

-- DEP Approves PennEnergy Resources 1.5 Million Gallon/Day Water Withdrawal For Shale Gas Drilling From Big Sewickley Creek In Beaver County  [PaEN] 

-- DEP Sets March 20 Hearing [If Requested] On Air Quality Permit Change For The Eastern Gas Transmission Punxsutawney Compressor Station In Jefferson County  [PaEN]

-- DEP Invites Comments On Mariner East II Natural Gas Liquids Pipeline Chapter 102 Permit Amendment For An Area In West Goshen Twp., Chester County  [PaEN]

-- DEP Invites Comments On MarkWest Project To Expose 4 Natural Gas Pipelines For 5,500+ Feet Ahead Of Longwall Mining In Donegal Twp., Washington County  [PaEN]

-- Public Comments Invited On State Air Quality Plan Amendment For PEI Power Corp Natural Gas-fired Power Plant In Lackawanna County  [PaEN]

-- PUC Invites Comments On Williams Natural Gas Pipeline Co. Proposal To Construct 2 Solar Energy Facilities To Provide Electricity To Compressor Stations In Columbia, Wyoming Counties  [PaEN]

-- DEP Posted 109 Pages Of Permit-Related Notices In February 17 PA Bulletin  [PaEN] 

-- PUC Now Accepting Comments On $250,000 Penalty Settlement With Peoples Gas On Natural Gas Over-Pressurization Incident In Indiana County  [PaEN]

-- PUC Public Hearings In Early March For Proposed $156 Million Peoples Natural Gas Rate Increase

Related Articles - Gas:

-- DEP Approves PennEnergy Resources 1.5 Million Gallon/Day Water Withdrawal For Shale Gas Drilling From Big Sewickley Creek In Beaver County; Citizens Group Opposes DEP Decision  [PaEN] 

-- Susquehanna River Basin Commission March 14 Meeting On Rulemakings, Water Withdrawal Requests, Including 8 Related To Shale Gas Development; And On Cooperative Fish Nursery General Permit  [PaEN]

-- PA Taxpayers To Give $130.9 Million In Tax Credits To Subsidize Shell Petrochemical Plant In Beaver County; Total Expected To Be $1.17 Billion Thru 2042; No Regard For Environmental Compliance Record  [PaEN]

-- Ohio River Basin Alliance, National Wildlife Federation Report Identifies Community Concerns, Priorities For Local Waters In Ohio River Watershed [Road-Dumping Drilling Wastewater]  [PaEN]

-- Marcellus Drilling News: National Fuel Gas Lawsuit Alleges Fraud, Counterfeit Parts Used At Natural Gas Compressor Stations  [PaEN]

-- Natural Gas Intelligence: 76% Increase In LNG Natural Gas Export Capacity Already Under Construction; US Group Fears Buildout Will Hurt American Businesses Urge ‘US Consumers First’ Policy  [PaEN]

-- Bloomberg TV: Canada’s Energy Minister: Period Of Using Natural Gas As Transition Fuel Should Be Short; Gas Should Not Replace Renewables; Canada Has Adopted Controls On LNG Exports The US Has Not  [PaEN]

-- Penn State Extension Energy Essentials: Unraveling Hydrogen Rainbow; Renewable Energy On The Farm; Carbon Markets, Climate-Smart Forestry  [PaEN]

-- Penn State Extension March 14 Webinar On Oil & Gas Wastewater Management - Project PARETO  [PaEN]

NewsClips - Gas:

-- TribLive: Beaver County Man Sues Shell Petrochemical Plant, Claims Plant Spews Pollution

-- The Energy Age Blog: Resident Files Lawsuit Against Shell Petrochemical Plant, Claims Plant Spews Pollution

-- Beaver County Times: Shell CEO Puts Beaver County Petrochemical Plant Price Tag At $14 Billion

-- Post-Gazette - Anya Litvak: A Political Battle Brews Over Natural Gas Exports Over Impacts To Gas Prices, Climate, Demand For Gas

-- Reuters: European Union Says Biden’s Pause On Approvals Of New LNG Natural Gas Export Facilities Will Have No Effect On US LNG Supplies To Europe Over Next 2 or 3 Years  [LNG Exports Are Expected To Double By 2030 On Already-Approved Projects]

-- TribLive Guest Essay: A Fossil Fuel Export Economy Is Wrong For America - By Tyson Slocum, Public Citizen

-- Utility Dive: Federal Energy Regulatory Commission OKs Cold Weather Reliability Standards [Driven In Large Part By Natural Gas Infrastructure Failures In 2021]

-- Reuters: US Regulators To Review Power System Performance During Recent Winter Storms

-- Pittsburgh Business Times: Pittsburgh-Based EQT Could Curtail Some Natural Gas Production As Gas Prices Fade

-- Reuters: Pittsburgh-Based EQT Drilling Misses Profit Estimates On Lower Natural Gas Prices

-- Reuters: US Natural Gas Drillers Cut Spending, Reduce Activity Amid Price Crash

-- Natural Gas Intelligence: Global Natural Gas Prices Continue Freefall Amid Weak Demand, Warm Weather

-- PUC Public Hearings In Early March For Proposed $156 Million Peoples Natural Gas Rate Increase

-- Post-Gazette - Anya Litvak: Peoples’ Gas Proposed 7.6% to 21.4% Rate Hikes Will Get Their Time In The Court Of Public Opinion Next Month

-- TribLive Guest Essay: Record Oil And Gas Production Means Energy And Economic Security - By Independent Petroleum Association Of America

-- Yale360 - Jon Hurdle: How A Legal Clean Air Law Loophole Allows Natural Gas Leaks To Keep Flowing  [Aggregation Of Air Emissions Issue] 

-- Marcellus Drilling News: Is Coterra Energy Headed For Buyout And Split As Forbes Article Speculates?

-- Post-Gazette - Anya Litvak: Carbon Dioxide Storage Hub Landmen Seek 80,000 Acres Across Western PA, Ohio, WV

-- Marcellus Drilling News: NAPE Speakers Say Carbon Capture & Sequestration A Risky Business

-- Williamsport Sun Guest Essay: Carbon Capture And Storage Can Keep Rural Economies Strong - By Erick Coolidge, Fmr Tioga County Commissioner

-- The Energy Age Blog: Dangerous Workplaces - US Drilling, Fracking Operations - 1,566 Workers Have Died In US

-- Financial Times: Geologists Signal Start Of Hydrogen Energy ‘Gold Rush’

[Posted: February 13, 2024]


2/19/2024

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