Decision “undermines efforts of U.S. trade negotiators” says America’s Energy Advantage
WASHINGTON, DC – September 10, 2014 – America’s Energy Advantage today released the following statement regarding Department of Energy’s final approval of Cameron LNG, LLC (Cameron) and Carib Energy LLC (Carib) to export domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the United States. The Cameron LNG facility in Cameron Parish, Louisiana can export 1.7 billion standard cubic feet per day (Bcf/d) of natural gas for a period of 20 years. Carib, located in Martin County, Florida, is authorized to export up to 0.04 Bcf/d of natural gas for that same period.
“The Obama Administration continues to send American natural gas to countries that have not signed a free trade agreement with the U.S. Giving the green light to export LNG to non-FTA trading partners undermines the efforts of U.S. trade negotiators to open closed markets to all American goods and services. It makes no sense for the United States to send American natural gas – an incredibly valuable strategic commodity – to our overseas competitors without receiving any trade concession in return.
“Stable and affordable natural gas is powering an American manufacturing comeback. According to IHS Chemical, more than $125 billion of new manufacturing investments are planned. This latest export approval will raise domestic natural gas, electricity, home-heating and propane prices for every American, undermine our manufacturing competiveness and cost the nation good-paying jobs. America’s Energy Advantage renews its call for the Administration to take an immediate ‘time out’ from further LNG export approvals until a new, comprehensive review of current market conditions is completed.”
Natural gas prices have more than doubled since the first LNG export application was approved and gas supplies are at their lowest levels in 11 years. New EPA carbon rules will only exacerbate this trend as realistic estimates suggest that the U.S. could exhaust its economically recoverable natural gas supplies by 2030. DOE has now approved 11.55 bcf/d to non-free trade countries and total approvals are well beyond the “high export” scenario. Continuing down this path puts our manufacturing renaissance at risk and will eliminate American jobs and harm the economy,” said America’s Energy Advantage.
About America’s Energy Advantage
America’s Energy Advantage (AEA) is a trade association representing many of the world’s leading manufacturers and commodity producers, as well as the United States’ publicly-owned natural gas distribution companies. Our organization is a strong supporter of rules-based free trade and believes that open markets create new opportunities for economic growth and higher standards of living for all Americans. AEA is dedicated to educating the American public about the growth in American manufacturing that has been made possible by our country’s abundant and affordable supply of natural gas.