Reed: White House Pause on Natural Gas Exports a Win for U.S. Consumers
Halting LNG exports abroad should help reduce prices for American consumers & safeguard our climate
WASHINGTON, DC – U.S. Senator Jack Reed (D-RI) welcomed the Biden Administration’s move to put U.S. consumers first and delay permitting for new liquefied natural gas (LNG) export terminals.
Today, after the U.S. Department of Energy announced it is halting the approval of new licenses to export U.S. liquefied natural gas while it studies how the shipments affect the economy, environment, and national security, Senator Reed welcomed the news and says the review will help reduce domestic energy prices and could make America more energy independent in the long run.
“This is good news for American consumers. It will increase the supply of domestic natural gas, which should create downward pressure on prices for Americans to heat their homes and power their businesses. Energy speculators may be upset that they can’t sell as much gas abroad, but this is a big win for working Americans here at home. The Biden Administration deserves credit for putting America first and helping to lower domestic gas prices,” said Reed, who has long urged the Biden Administration to reevaluate the export of liquefied natural gas to benefit American consumers.
In February of 2022, Reed led a letter to the U.S. Department of Energy urging the Biden Administration to “urge the Department to conduct a review of LNG exports and their impact on domestic prices and the public interest, and develop a plan to ensure natural gas remains affordable for American households. Until such a plan is completed, the Department should consider halting permit approvals of U.S. LNG export facilities.”
Following the letter, the agency’s Energy Information Administration (EIA) released a report in May 2023 on the impact of LNG exports on the U.S. market. It found that “higher LNG exports results in upward pressure on U.S. natural gas prices and that lower U.S. LNG exports results in downward pressure.”
To further assist U.S. allies, the White House included exemptions in the plan for national security should U.S. partners need more LNG.