US Energy Secretary Jennifer Granholm has urged caution on new natural gas export terminals, warning that “unfettered exports” of liquefied natural gas (LNG) could drive up domestic prices and increase greenhouse gas emissions. The Energy Department’s long-awaited study on the environmental and economic impacts of natural gas exports found that US LNG shipments displace renewable energy sources like wind and solar power.
According to Granholm, unfettered exports would lead to a 30% increase in wholesale domestic natural gas prices by 2050, costing American households an additional $100 annually. This would exacerbate the challenges faced by low-income families in meeting basic needs during times of economic uncertainty.
Granholm emphasized that the study’s findings support the need for a more sustainable approach to LNG exports. She stated that a “business-as-usual” approach is neither sustainable nor advisable, given the potential environmental and social consequences.
The Biden administration paused approvals of new LNG projects in January to conduct further research on their impact. The pause was met with criticism from the oil and gas industry and Republican allies, who argue it’s unnecessary and counter-productive. However, environmental groups welcome the study as a crucial piece of evidence against the benefits of increased LNG exports.
Experts warn that while natural gas is a vital tool for countries looking to displace dirtier fuels, its production has significant climate, economic, national security, and public health implications. Environmentalists fear that supercharging LNG exports would drive up costs for consumers and harm the planet’s future.
Source: https://fortune.com/2024/12/18/energy-secretary-granholm-trump-exports-lng-drive-up-us-prices