Debate Over U.S. LNG Exports Heats Uphttp://www.fool.com/investing/general/2013/04/03/debate-over-us-lng-exports-heats-up.aspx Arjun Sreekumar
April 3, 2013
The debate over whether or not the U.S. should export its glut of natural gas – in a liquefied form known as LNG – is heating up.
The main beneficiaries would be the companies exporting LNG abroad, as well as U.S. natural gas producers. So far, only Cheniere Energy's (NYSEMKT: LNG) Sabine Pass terminal has been green-lighted to ship LNG to countries that don't have a free trade agreement with the U.S. But many more companies are restlessly vying for permits.
The main losers would include various manufacturing firms, especially those whose operations are highly energy intensive. Over the past couple of years, America's shale gas boom has spurred a domestic "manufacturing renaissance," as U.S. companies including chemical manufacturers and steelmakers have reaped the rewards of cheap and plentiful natural gas.
The argument against LNG exports
Higher gas prices, the group argues, could lead to a substantial loss of jobs, as well as reduced investment, in the U.S. manufacturing sector.
Huntsman chemicals' CEO Peter Huntsman suggests that if all the proposed export projects were green-lighted, it would cause the price of domestic natural gas to "skyrocket." And Dow's George Blitz argues that fears of a future spike in U.S. gas prices could seriously threaten the roughly $100 billion of new investment the company calculates has been planned to capitalize on cheap and plentiful domestic natural gas.
America's Energy Advantage is instead advocating a "balanced" approach, suggesting that only a few more companies should be approved to export U.S. natural gas to countries that don't have free trade agreements with the U.S.
The argument in favor of LNG exports