STATEMENT: Wood Mackenzie Study Illustrates Vital Role of U.S. LNG exports
A new study by data analytics firm Wood Mackenzie, commissioned by the Asia Natural Gas & Energy Association, explored Asia’s demand for liquefied natural gas (LNG) to 2050, under two differing scenarios: whether the pause on U.S. LNG export permits is lifted in 2025, or whether the pause remains in place for a longer period of time.
The study found that demand for LNG in Asia is forecast to double by 2050 as developing and emerging nations seek cleaner fuel than coal. If the pause on LNG export permits is lifted in 2025, US LNG is forecast to make up a third of global supply by 2035. If the pause remains in place longer, Asian nations looking to buy LNG will turn toward less competitive projects, leading to higher prices.
Higher prices could result in Asia’s LNG demand dropping by 30 percent through 2035. Should demand drop that much, an additional 95 million tons of coal will be used for energy production in the region annually, leading to an estimated 100 million tons of additional CO2 emissions per year, according to Wood Mackenzie’s projections.
Below is a statement that can be attributed to me, Craig Stevens, spokesman for the GAIN Coalition and former senior advisor to U.S. Energy Secretary Sam Bodman:
“Wood Mackenzie’s study illustrates the unique opportunity U.S. LNG provides the world. Many growing nations in Asia rely on coal for energy production, and with demand for energy expected to surge, the U.S. should be exporting the LNG to nations that need it most. Achieving this starts with lifting the Biden administration’s moratorium on approving new U.S. LNG export facilities.
These types of energy infrastructure projects provide good-paying jobs for hard-working Americans and will help to provide cleaner fuels to power emerging economies around the globe. America is blessed with tremendous energy resources, and it would be wise to develop those resources to strengthen the U.S. economy and power our allies, instead of forcing them to buy their energy from other countries.“