The US Industrial Energy Consumers of America (IECA) on Friday sent a letter to US Energy Secretary Jennifer Granholm urging the Department of Energy (DoE) to restrict LNG exports to prevent price spikes this winter. The IECA, which represents industrial companies, also requested the DoE to hold all pending export authorisations for new LNG export terminals in the country’s lower 48 states. However, industry experts said the request would unlikely result in an immediate revision to the Natural Gas Act (NGA), which is the framework for licensing LNG exports.
According to IECA’s letter, the rally in natural gas prices boosts the cost of natural gas liquids (NGLs), which are the feedstocks for petrochemicals and plastics. The group reiterated its warning a decade ago that unchecked LNG exports could lead to demand shocks and volatile prices.
However, opponents of the proposed restriction said such claims were overstated. They said that the recent price rally resulted from supply tightness due to capital discipline by upstream producers following the pandemic-driven downturn last year. Ultimately, high prices should encourage producers to pump more gas which could add supplies and cool down the overheated prices.
Tags: AlwaysFree,Americas,English,Gas,USPublished on September 20, 2021 3:15 PM (GMT+8)
Last Updated on September 20, 2021 3:15 PM (GMT+8)