June 30, 2017
It is entirely fitting that the Trump administration’s current policy focus “energy week” is largely centered on American energy exports, particularly liquefied natural gas (LNG). After all, the U.S. LNG story is one of the most significant global energy developments of 2017 according to a June 27, 2017 report from The Hill.
According to a recently released study by the American Petroleum Institute, these first six LNG export terminals will support up to 170,000 (direct, indirect, induced) jobs during construction, about 50,000 jobs on a permanent basis, and up to $20 billion per year (2015 USD) in “value-added” economic activity over the next decade.
But, this is just for the first “wave” of projects. If the second, equal-sized wave (approx. 70 million tons per year of LNG capacity) of projects/expansions comes to fruition — the number of jobs and value-added economic activity could literally double in magnitude.
And, 12 more major projects — ten in the third wave and two in the fourth wave —are in the regulatory review process, awaiting authorizations from the Federal Energy Regulatory Commission and the Department of Energy.
There is no doubt that U.S. LNG exports and related upstream production and midstream gas processing and shipping activities can be a “monster tug” that pulls the U.S. economic ship forward in the years ahead.
However, the good news doesn’t stop at the U.S. coastline.
Low-priced U.S. natural gas, spurred by the shale energy revolution, has led to massive domestic fuel-switching and thus big reductions in conventional air pollutants and greenhouse gas emissions. As a result, carbon dioxide emissions in the U.S. electric power sector are at their lowest levels since the early 1990s. Through LNG exports, these benefits can accrue to other nations — such as China, India and Korea — all of which now rely heavily on coal for power and industrial uses.
Moreover, U.S. LNG can help to bring fuel source diversity to nations — such as those in Central and Eastern Europe — that need alternatives to an incumbent, state-controlled supplier that is not afraid to use its monopolistic power for political leverage.
Energy Secretary Rick Perry acted promptly to approve the first two LNG export licenses that appeared on his desk and President Trump raised U.S. LNG in his recent meeting with Indian Prime Minister Narendra Modi and is expected to do so when he meets Korean President Moon Jae-in. Plus, there is the 100-day U.S.-China trade action plan that includes LNG.
What this means to you.
There is no doubt that the Trump administration is “all in” when it comes to LNG exports. Low-priced, natural gas has led to massive domestic fuel-switching and thus big reductions in conventional air pollutants and greenhouse gas emissions. Through LNG exports, these benefits can accrue to other nations — such as China, India and Korea — all of which now rely heavily on coal for power and industrial uses.
MIRATECH can help
Contact MIRATECH to learn more about emission control for stationary engines.