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Marcellus Shale Gas Coalition Official Joins Pittsburgh-based EQT In Saying We Have A 'Duty’ To Provide LNG Gas To China, Our Economic, Military Competitor

On April 10, an official with the Marcellus Shale Gas Coalition joined EQT Corporation, Pennsylvania’s largest gas producer, in saying we have a ‘duty’ to provide PA-produced gas to China, our economic and military competitor.

The comment followed a House Republican Policy Committee hearing on April 9 touting the economic benefits of developing more LNG gas export facilities and criticism of the Biden Administration’s pause on permits for new LNG export facilities which will still allow a doubling of existing LNG export capacity.

The comment came in response to a PA Environment Digest Tweet posting a news article on the hearing and pointing out EQT’s very public position that the gas industry has a ‘duty’ to provide Pennsylvania and US-produced gas to China so they can reduce greenhouse gas emissions just like Pennsylvania and Ohio did.

The Director of Government Affairs for the Marcellus Shale Gas Coalition Tweeted a reply from his personal account-- “Damn right we do, Dave Hess. Otherwise the coal plants China is building negates an CO2 benefit the U.S. has achieved thanks to #NatGas.” Read the full reply here.

Other industry observers, like Marcellus Drilling News, have looked at the bigger picture-- the impact of selling LNG gas on the fundamental interests of the United States-- “Selling oil and natural gas to China?” “It simply should not happen, period.” Read more here.

MDN went on to explain--

“What we will say is what we’ve said dozens (maybe hundreds) of times before — that China is our enemy. They are our biggest enemy on the planet.

“Anything we do to enable China to be more powerful is pure stupidity.

“More of the products Americans buy come from China than those manufactured here at home — it’s insanity.

“China will one day use its economic power to crush us.

“So maybe you won’t be surprised to read that this one time (perhaps the first!), we think Brown and Merkley’s bill is not such a bad idea.

“As far as we know, we’ve never agreed with either of them on anything.

“But selling oil and natural gas to China? Or Russia? Or North Korea? Or Iran?

“It simply should not happen, period.

“Sorry to our drilling friends who will disagree with us (those who sell LNG to China).

“For us, this is a matter of putting our country above profits.”

There was no discussion at the Republican hearing on who the gas produced by Pennsylvania workers should be sold to-- China, Iran, North Korea or other unfriendly nations-- other than exports would provide an economic boost to the state and benefit those other economies.

EQT ‘Duty’ To Supply Gas To China

In November, Pittsburgh-based EQT Corporation, the largest producer of natural gas in the US, relaunched its "Unleash” LNG Exports initiative that argued the US "has a duty to provide” natural gas to countries like China because they don't have natural gas of their own. Read more here.

CEO Toby Rice argued China needs US natural gas to reduce its dependency on the use of coal to generate electricity and reduce power plant emissions.

EQT noted "China's current energy mix mirrors that of Pennsylvania and Ohio in 2005" saying with US-supplied natural gas, China could replicate the model for emissions reduction.

EQT said "The only solution" to climate change is "unleashing US LNG" for China.

Click Here for a copy of EQT’s presentation.

EQT is advancing its Unleash LNG strategy by signing agreements to export its gas-- Lake Charles, Commonwealth LNG and other facilities.

About 25% of the natural gas produced in Pennsylvania is used in Pennsylvania. The other 75% is used outside the state. Read more here.

Federal Bill To Ban Sales To China, Iran, North Korea

On February 28, Ohio US Senator Sherrod Brown and Oregon US Senator Jeff Merkley introduced the Protecting American Households from Rising Energy Costs Act, legislation that would ban the export of crude oil or liquefied natural gas (LNG) to our biggest adversaries: China, Russia, Iran, and North Korea.

“It’s time to stop raising prices for Americans by sending LNG to our adversaries,” said US Senator Merkley. “I’m partnering with Senator Brown to fight to lower energy prices for working Americans.”

“We should not allow American liquid natural gas to fuel China’s state-sponsored industries. The Chinese Communist Party uses that energy to cheat and undermine Ohio production and Ohio jobs,” said US Senator Brown. “Blocking China and other adversaries from obtaining our LNG will protect our national security, and keep more of this energy in America, helping bring down prices for Ohioans.”

In addition to Merkley and Brown, this legislation is sponsored by Senators Angus King (I-VT) and Jack Reed (D-RI).

Since 2018, U.S. LNG exports have more than tripled to 14 billion cubic feet per day, making the United States the largest exporter of LNG in global history.

Further, exports could rise another 48 billion cubic feet per day, almost three times more than today’s large volumes, when projects that are either under construction or fully permitted come online.

In 2021, 1.2 billion cubic feet per day of LNG were exported to China, making it the second largest destination for U.S. LNG at 12.7 percent of exports.

Exports to China dropped in the wake of Russia’s war on Ukraine, but China is locking up long-term LNG contracts from the U.S. for proposed projects.

Exporting LNG is causing price instability and rising costs for American households and industries, the Senators said.

A report by Energy Innovation found that approving pending LNG export terminals would increase natural gas costs for American households, businesses, and industry by 9 to 14% each year. [Read more here]

The Protecting American Households from Rising Energy Costs Act would increase American energy security and protect American consumers by ensuring that valuable natural resources are not being exported to adversarial nations—helping to keep domestic prices stable and affordable for American households and businesses, while not locking us in to decades of fossil gas infrastructure that exacerbates climate chaos.

Click Here for a copy of the bill. Click Here for a summary.

View From China

China needs natural gas to help meet power demands and for industrial chemicals and fertilizer and for continued economic growth. Read more here.

Not only EQT, but Shell and other companies see LNG gas demand growing significantly by 2040 as the Chinese industrial sector pivots from coal to gas. Read more here.

Shell’s CEO said “China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas.” Read more here.

Reuters has reported US LNG gas supplies give China the “muscle” to become a major force in global gas trading for gas, even for gas they don’t end up using. Read more here.

China is the world leader in producing electricity from renewable energy sources and a major exporter of solar and wind energy technology. [Read more here.]

It also has a growing natural gas industry of its own. Read more here.

China has the world’s second biggest economy and would like to continue its growth with a recently announced 5% growth target and LNG would be part of that success. Read more here.

Where do the economic and environmental interests of the US lie?

Shouldn’t we discuss it?

NewsClips:

-- Marcellus Drilling News: PA Fracking Industry Has Opportunity To Defeat Biden In 2024

-- Bloomberg: PetroChina To Build Up Its LNG Gas Fleet, Expand Global Trade

-- Institute For Energy Economics & Financial Analysis: US-Japan-Philippines Summit Offers Opportunity To Address False LNG Gas Narratives

-- AP: Oklahoma’s Republican Attorney General Sues Natural Gas Companies Over Price Spikes During 2021 Winter Storm

Resource Links:

-- PA Utility Law Project March 15 Webinar On Impacts Of LNG Gas Exports On Energy Costs For Pennsylvania Families; LNG Export Capacity To Double, Even With Permit Pause [PaEN]

-- US Senators Introduce Bill To Ban US LNG Gas Sales To Any Entity Under The Control Of Communist China To Protect US Jobs; Americans From Price Spikes; EQT Says We Have A ‘Duty’ To Provide LNG Gas To China; Where Do AMERICAN Interests Lie? [PaEN]

-- US Energy Information Agency: US LNG Gas Exports To China

NewsClips - On Republican Hearing: