API: Biden’s restrictive LNG plan a “win” for Russia, loss for global energy security
(WO) – The American Petroleum Institute (API) released a statement from President and CEO Mike Sommers on new reports that the Biden administration is moving forward with plans to disrupt the development of U.S. LNG terminals.
“This would be a win for Russia and a loss for American allies, U.S. jobs and global climate progress. There is no review needed to understand the clear benefits of U.S. LNG for stabilizing global energy markets, supporting thousands of American jobs and reducing emissions around the world by transitioning countries toward cleaner fuels. This is nothing more than a broken promise to U.S. allies, and it’s time for the administration to stop playing politics with global energy security.”
U.S. LNG is critical for helping Europe replace Russian gas. If the administration moves forward with this, it would undercut President Biden’s own pledge to send roughly 5 Bcfd of LNG through 2030 to Europe to help end its dependence on Russian gas. An analysis of President Biden’s pledge found that its economic impact to the American economy could be as high as 71,500 jobs per year and $100 billion in combined energy infrastructure investment and additional GDP between 2025 and 2030.
In 2022, the U.S. surged more than 800 LNG cargoes to Europe – a 141% increase from 2021. A recent study shows that Europe likely faces a looming natural gas supply gap that threatens its long-term energy security.
In the U.S., natural gas prices remain among the lowest in the world according to the International Energy Agency (IEA). While U.S. LNG exports reached record highs in 2023, domestic prices declined 62% as U.S. natural gas production also surged to record levels—demonstrating this industry’s ability to meet rising global demand for natural gas while maintaining a well-supplied domestic market.
U.S. LNG can accelerate global emissions reductions by displacing higher-emitting fuels. Coal-to-gas switching is the main reason that the U.S. has led the world in reducing CO2 emissions over the past two decades. Global coal consumption continues to surge, likely reaching another all-time high in 2023. By 2024, three out of every four tons of coal consumed will occur in China, India and Southeast Asia. LNG can displace higher-emitting fuels like coal, allowing these countries advance their respective climate goals.
Lead image: Golden Pass LNG
