LNG exports: Profit for speculators, cost for consumers and climate

"Record LNG exports drive up home heating prices for Americans, and line the pockets of fossil fuel CEOs."

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A recent report challenges the idea that U.S. liquefied natural gas (LNG) exports are beneficial for consumers. Titled “Methane Madness,” the report suggests that fossil fuel speculators, not consumers, would primarily benefit from these exports, while contributing to higher domestic prices and increased emissions.

“Methane Madness,” a joint publication by Friends of the Earth, Bailout Watch, and Public Citizen, scrutinizes the impact of eight proposed LNG projects. The report argues these projects would significantly harm U.S. consumers and exacerbate the climate crisis, producing emissions equivalent to 113 coal plants annually.

Big Oil companies have claimed that expanded LNG exports would benefit consumers. However, the report contradicts these claims, indicating that the main beneficiaries would be commodity trading firms and Big Oil’s speculative trading arms. It also suggests that these exports would not significantly contribute to European energy security.

The Biden administration has reportedly paused the approval of the Calcasieu Pass 2 LNG export terminal. This decision is seen as a response to growing environmental concerns and pressure from climate campaigners and advocacy groups.

According to the report, the proposed LNG projects would lead to higher energy prices for American consumers. They are also projected to contribute significantly to global greenhouse gas emissions, contradicting efforts to combat the climate crisis.

Environmental groups have welcomed the Biden administration’s pause on the Calcasieu Pass 2 project. Activists see this as a positive step but emphasize that more decisive action is needed to halt all new oil and gas projects to prevent further climate damage.

The report suggests that the future of LNG exports should be reconsidered, focusing on the potential environmental impact and consumer costs. It recommends that the U.S. government reassess its approach to LNG exports in light of these findings.

The findings of the “Methane Madness” report and the Biden administration’s recent actions indicate a critical juncture in U.S. energy policy, particularly regarding LNG exports and their broader environmental and economic impacts.

“Record LNG exports drive up home heating prices for Americans, and line the pockets of fossil fuel CEOs,” said Public Citizen energy researcher Alan Zibel. “These new planet-wrecking projects are not in the interest of the public.”

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