Former White House Energy Adviser Warns Against Motions to Intervene in LNG Export Applications

August 9, 2013 by

This week, the American Public Gas Association and America’s Energy Advantage filed motions to intervene the liquefied natural gas export applications with the Department of Energy. In response, Dr. Jack Rafuse, a former White House Energy Adviser released the following statement:

“Recent protests against applications for LNG export to non-FTA countries on the basis of price impacts are short-sighted and appear to be self-serving.  Nearly every macroeconomic study has evaluated impacts to U.S. LNG prices and have found little material impact to consumer prices, but significant economic gains, including a reduced trade deficit, significant tax revenue and new jobs.  The federal government’s own study found that the greater the amount exported, the greater the economic benefit.”

“The Dow Chemical-sponsored America’s Energy Advantage has been upfront about its opposition to letting the free-market set natural gas prices.  Instead they’ve protested each application and advocated for a “measured approach” on a “case-by-case” basis, which transparently means their support for delaying approval of LNG export applications until companies move their $3-6 billion investments in U.S. infrastructure to other shale gas plays across the world.  In addition, Dow Chemical has a financial stake in one of the three applications to export LNG that have been approved.  Slow-walking approval of this significant economic opportunity may be in Dow’s best interest, but it’s certainly not in the best interest of our nation.”

To speak with Dr. Jack Rafuse, please reply to this email or contact [email protected].

Background

On August 5, 2013 the American Public Gas Association (APGA) filed a motion to intervene “in opposition to an application by Freeport-McMoRan Energy, LLC to export approximately 3.22 billion cubic feet per day (Bcf/d) of LNG to non-free trade agreement (FTA) countries”.  This is nothing new from APGA, which represents publically-owned gas distributors; they have petitioned nearly every application for LNG export to a non-FTA country citing price impacts.

On August 5, 2013, America’s Energy Advantage (AEA) similarly filed a motion to intervene with the Department of Energy. AEA is a coalition of Dow Chemical, Eastman Chemical, Alcoa and others.

On August 7, 2013, the Department of Energy approved Lake Charles Exports LLC application after 823 days of review.  19 additional LNG export applications still await approval.

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