popular articles

United States: 31% Predicted Energy Cost Increase with LNG Export Growth

The DOE warns of economic and climate risks associated with increased liquefied natural gas (LNG) exports, with an estimated 31% rise in wholesale prices and significant social impacts.

Please share:

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.

Predicted Energy Price Increases

According to the study, increasing LNG exports would lead to a 31% rise in domestic wholesale gas prices by 2050. This increase would translate to an additional $122.54 per year for American households in combined gas and electricity costs. Industrial costs, meanwhile, could rise by $125 billion over 30 years, representing a significant burden for businesses.

Jennifer Granholm, Secretary of Energy, cautioned against “unfettered” exports, emphasizing that the benefits to the LNG industry would be offset by substantial costs for American consumers and businesses.

Significant Environmental Impacts

The report also examines the environmental consequences of increased exports. It estimates that larger export volumes would result in a rise of 1.5 gigatons of direct greenhouse gas emissions per year by 2050, about 25% of the current annual emissions of the United States.

Additionally, the infrastructure required to support these exports, such as liquefaction plants, is often located in regions already heavily exposed to pollution. This concentration could exacerbate environmental and social inequalities.

Diverging Reactions from Stakeholders

The publication of this report has triggered contrasting reactions among economic and political stakeholders. Organizations like the Natural Resources Defense Council (NRDC) have welcomed the study, asserting that it provides strong arguments for contesting new export authorizations.

Conversely, the Center for Liquefied Natural Gas, an industry association, criticized the DOE’s interpretation of the results. According to Charlie Riedl, the center’s executive director, the study shows that LNG exports deliver significant economic benefits to the U.S. GDP, estimated at $410 billion by 2050, while meeting global demand without jeopardizing domestic supply.

International Strategic Considerations

On a geopolitical level, the DOE acknowledges the strategic importance of U.S. LNG in supporting European allies during recent energy crises. However, the report anticipates a decline in European demand as countries reduce greenhouse gas emissions.

In contrast, China is expected to become the world’s largest LNG importer by 2050, underscoring the importance of U.S. exports in meeting the needs of the Asian market.

The report calls for a cautious and balanced approach to managing future LNG exports, considering economic, climate, and social implications to ensure they truly serve the public interest.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Eni and YPF have signed a memorandum of understanding to evaluate Eni's participation in the Argentina LNG project, aimed at developing resources from the Vaca Muerta gas field and exporting up to 30 million tons of LNG per year.
bp has safely loaded the first liquefied natural gas (LNG) cargo from the Greater Tortue Ahmeyim (GTA) Phase 1 project, marking Mauritania and Senegal’s entry into the global LNG export market.
bp has safely loaded the first liquefied natural gas (LNG) cargo from the Greater Tortue Ahmeyim (GTA) Phase 1 project, marking Mauritania and Senegal’s entry into the global LNG export market.
Eni is set to award a $2.5bn contract for a new floating LNG unit off Mozambique, aiming to intensify the development of the Coral North gas field.
Eni is set to award a $2.5bn contract for a new floating LNG unit off Mozambique, aiming to intensify the development of the Coral North gas field.
TotalEnergies expands its liquefied natural gas portfolio with a long-term supply deal in Texas and a sales contract to the Dominican Republic starting in 2027.
TotalEnergies expands its liquefied natural gas portfolio with a long-term supply deal in Texas and a sales contract to the Dominican Republic starting in 2027.
The coal-fired plant in Saint-Avold will be converted to gas and biogas under a recently approved law, preserving 500 jobs without public financial support.
Mubadala Energy acquires 24.1% of Kimmeridge’s SoTex HoldCo, marking its first foray into the US gas and LNG market.
Mubadala Energy acquires 24.1% of Kimmeridge’s SoTex HoldCo, marking its first foray into the US gas and LNG market.
China is increasing imports of Russian liquefied petroleum gas, but Russia's infrastructure limitations complicate the complete replacement of U.S. LPG, despite joint projects aimed at overcoming these constraints by late 2025.
China is increasing imports of Russian liquefied petroleum gas, but Russia's infrastructure limitations complicate the complete replacement of U.S. LPG, despite joint projects aimed at overcoming these constraints by late 2025.
A lasting peace in Ukraine could revive Russian exports to Europe and weigh on the future of liquefied natural gas projects in the United States.
A lasting peace in Ukraine could revive Russian exports to Europe and weigh on the future of liquefied natural gas projects in the United States.
Reconnaissance Energy Africa Ltd. continues preparations at Prospect I, located in licence PEL73 in Namibia, aiming for 365 million barrels of unrisked oil resources.
Baghdad has signed a strategic agreement with GE Vernova to build natural gas power plants totalling 24,000 MW, as the country seeks to reduce its energy dependence on Iran.
Baghdad has signed a strategic agreement with GE Vernova to build natural gas power plants totalling 24,000 MW, as the country seeks to reduce its energy dependence on Iran.
Italian group Snam will acquire nearly a quarter of Open Grid Europe for €920mn, expanding its gas infrastructure presence in Germany, subject to regulatory approvals expected by the third quarter of 2025.
Italian group Snam will acquire nearly a quarter of Open Grid Europe for €920mn, expanding its gas infrastructure presence in Germany, subject to regulatory approvals expected by the third quarter of 2025.
Perenco will acquire Woodside’s oil and gas assets in Trinidad and Tobago, expanding its national output beyond 500 million standard cubic feet per day following expected closing by the third quarter of 2025.
Perenco will acquire Woodside’s oil and gas assets in Trinidad and Tobago, expanding its national output beyond 500 million standard cubic feet per day following expected closing by the third quarter of 2025.
Sasol confirms the launch in September 2025 of a key gas project to supply a major power station in Mozambique, following an unexplained delay from the originally scheduled March date.
Italian company Eni has initiated a major engineering, procurement, construction and installation (EPCI) tender for its $17.49 billion Kutei North Hub gas project offshore Indonesia.
Italian company Eni has initiated a major engineering, procurement, construction and installation (EPCI) tender for its $17.49 billion Kutei North Hub gas project offshore Indonesia.
Bulgaria will begin expanding its gas network in the coming weeks, a cornerstone of the "The Vertical" project aimed at strengthening regional energy security following the halt of Russian transit through Ukraine.
Bulgaria will begin expanding its gas network in the coming weeks, a cornerstone of the "The Vertical" project aimed at strengthening regional energy security following the halt of Russian transit through Ukraine.
TAQA will lead the construction and operation of a 1 GW gas-fired power plant in Al Dhafra as part of a strategic partnership with EWEC, supporting a total energy infrastructure investment of AED36bn in Abu Dhabi.
TAQA will lead the construction and operation of a 1 GW gas-fired power plant in Al Dhafra as part of a strategic partnership with EWEC, supporting a total energy infrastructure investment of AED36bn in Abu Dhabi.
The bp Trinidad and Tobago joint venture has launched production at the offshore Cypre field, marking bp’s second major start-up in 2025 and strengthening its shallow-water footprint in the region.
Shell has finalised the acquisition of Pavilion Energy in Singapore, integrating a portfolio of 6.5 mtpa LNG contracts, regasification capacity, and bunkering activities.
Shell has finalised the acquisition of Pavilion Energy in Singapore, integrating a portfolio of 6.5 mtpa LNG contracts, regasification capacity, and bunkering activities.
The potential lifting of U.S. sanctions on the Arctic LNG 2 project paves the way for a rapid resumption of Russian liquefied natural gas exports, significantly impacting global markets from the third quarter of 2025.
The potential lifting of U.S. sanctions on the Arctic LNG 2 project paves the way for a rapid resumption of Russian liquefied natural gas exports, significantly impacting global markets from the third quarter of 2025.
Prairie Provident Resources closed 2024 with a reorganisation of its assets and a strategic focus on the Basal Quartz formation, backed by capital raises and revised reserve estimates.
Prairie Provident Resources closed 2024 with a reorganisation of its assets and a strategic focus on the Basal Quartz formation, backed by capital raises and revised reserve estimates.
TotalEnergies welcomed the launch of a criminal investigation in Mozambique into allegations of crimes committed by security forces near its suspended gas project in Cabo Delgado province.
Baker Hughes will provide integrated coiled-tubing drilling services to Dubai Petroleum Establishment as part of the Margham gas storage project, reinforcing its role in the emirate’s energy security.
Baker Hughes will provide integrated coiled-tubing drilling services to Dubai Petroleum Establishment as part of the Margham gas storage project, reinforcing its role in the emirate’s energy security.
Algeria announces an ambitious goal to increase its annual natural gas production to 200 billion cubic meters within five years, supported by significant investments and strategic infrastructure projects aimed at the international market.
Algeria announces an ambitious goal to increase its annual natural gas production to 200 billion cubic meters within five years, supported by significant investments and strategic infrastructure projects aimed at the international market.
Europe is considering various energy strategies up to 2050, revealing highly variable costs and an uncertain future for natural gas demand amid political pressure to achieve carbon neutrality at lower costs.
Europe is considering various energy strategies up to 2050, revealing highly variable costs and an uncertain future for natural gas demand amid political pressure to achieve carbon neutrality at lower costs.

Advertising