The United States Department of Energy (DOE) has released a report detailing the economic and environmental consequences of a significant increase in liquefied natural gas (LNG) exports. This study, essential for guiding future energy policies, highlights notable impacts on domestic costs, greenhouse gas emissions and the distribution of effects on local communities.
Expected rise in energy prices
According to the study, an increase in LNG exports would cause a 31% increase in wholesale domestic gas prices by 2050. This increase would translate into an additional burden of $122.54 per year on American households in costs. combined gas and electricity. Industrial costs, meanwhile, could increase by $125 billion over 30 years, a significant burden for businesses.
Energy Secretary Jennifer Granholm warned of “uncontrolled” exports, stressing that benefits to the LNG industry would be outweighed by significant costs to American consumers and businesses.
Significant environmental impacts
The report also examines the environmental consequences of increased exports. It estimates that higher export volumes would lead to an increase in direct greenhouse gas emissions of 1.5 gigatons per year by 2050, or about 25% of current U.S. annual emissions.
Additionally, the infrastructure needed to support these exports, such as liquefaction plants, is often located in regions already highly exposed to pollution. This concentration could exacerbate environmental and social inequalities.
Divergent reactions from the actors concerned
The publication of this report sparked contrasting reactions among economic and political actors. Some organizations, like the Natural Resources Defense Council (NRDC), welcomed the study, saying it provides strong arguments to challenge the new export authorizations.
In contrast, the Center for Liquefied Natural Gas, an industry association, criticized the DOE’s interpretation of the results. According to Charlie Riedl, executive director of the center, the study shows that LNG exports provide significant benefits to U.S. GDP, estimated at $410 billion by 2050, while meeting global demand without compromising domestic supplies. .
International strategic considerations
Geopolitically, the DOE recognizes the strategic importance of American LNG in supporting European allies in the face of recent energy tensions. However, the report anticipates a decline in European demand as countries reduce their greenhouse gas emissions.
In contrast, China is expected to become the world’s largest importer of LNG by 2050, reinforcing the importance of US exports in meeting the needs of the Asian market.
The report calls for a careful and balanced approach in managing future LNG exports, taking into account economic, climate and social implications to ensure they truly serve the public interest.
