DOE natural gas analysis draws disbelief from Republicans, industry

The future of U.S. liquified natural gas exports remains complicated as the incoming Trump administration will have to contend with a recent Department of Energy analysis now open for public comment.

The study offers a justification for the Biden administration’s indefinite pause on new LNG export sites back in January, claiming that increasing LNG exports would not only increase greenhouse gas and methane emissions but also inflict economic damage.

The results could hinder Trump’s plan to approve new LNG natural gas export terminals, part of his goal to reestablish American energy independence.

While the analysis admits that increasing LNG exports would generate revenue and create jobs across the natural gas supply chain, it simultaneously holds that the average American household would face 30% higher gas prices.

Without citing specific data, Secretary of Energy Jennifer Granholm said the projected price increase is due to “the increasing domestic price of the natural gas itself, increases in electricity prices (natural gas being a key input in many U.S. power markets), and the increased costs for consumers from the pass-through of higher costs to U.S. manufacturers.”

The Texas Oil & Gas Association refutes this claim, citing federally-produced energy data. Other industry reports also refute Biden administration claims, The Center Square previously reported.

House Energy and Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., condemned the rushed Biden administration study as a “politically motivated” move meant to “hamstring” the energy goals of the incoming administration.

“Let’s call this ‘study’ what it is: A clear attempt to cement Joe Biden’s rush-to-green agenda,” she said in a statement. “By trying to shut down American LNG, DOE is threatening hardworking Americans’ jobs and economic development, weakening the energy security of our allies, and strengthening our adversaries.”

The partial LNG export ban garnered bipartisan opposition from lawmakers and states from the beginning, with Louisiana and Texas, two main exporters of LNG, suing the DOE in response.

Although a federal judge sided with the states and ruled that the ban was illegal, the DOE argued that, under the Natural Gas Act, it still needed to conduct a study on whether LNG exports are in the “public interest” before it decided whether to lift the ban.

Counting on an incoming trifecta and a fracking entrepreneur as the future leader of the DOE, Republicans have pledged to reverse the ban as soon as possible.

American Gas Association CEO Karen Harbert said the AGA will “rectify the glaring issues with this study” during the public comment period.

“The Biden Administration’s pause on American LNG exports was a mistake that resulted in uncertainty for the market, for investors, and for America’s allies around the world,” Harbert added. “This report is a clear and inexplicable attempt to justify their grave policy error.”