Granholm Warns Against "Unfettered Exports" Of LNG

The United States should proceed cautiously in approving new natural gas export terminals, Energy Secretary Jennifer Granholm said, warning that “unfettered exports” of liquefied natural gas (LNG) could raise domestic prices and worsen greenhouse gas (GHG) emissions, Matthew Daly reported for the Associated Press (AP).

Unfettered exports of LNG could increase wholesale domestic natural gas prices.

Granholm’s remarks coincided with the release of a long-awaited Energy Department study on the environmental and economic impacts of LNG exports, which have surged over the past decade.

The analysis found that U.S. LNG exports drive up domestic wholesale prices and often displace renewable energy sources such as wind and solar.

Increased LNG exports would also contribute to higher global greenhouse gas emissions, even with the adoption of new carbon-capture technologies, the report said.

“Unfettered exports of LNG would increase wholesale domestic natural gas prices by over 30%, costing U.S. households an additional $100 annually by 2050,” Granholm warned.

She added, “We have recently experienced the ripple effects of rising energy prices both domestically and globally since the COVID-19 pandemic,” emphasizing that an “export-induced price increase” would make it harder for some families to meet basic needs.