Source: United States Senator for Maine Angus King
WASHINGTON, D.C. – U.S. Senator Angus King (I-Maine), a member of the Senate Energy and Natural Resources Committee, led a group of ten Senators in urging the Biden administration to seriously reevaluate exports of liquefied natural gas (LNG) in order to reduce domestic energy and heating costs. In a letter to U.S. Secretary of Energy Jennifer Granholm, the lawmakers stress that with energy and heating cost on the rise – especially in New England – the U.S. shouldn’t be exporting historic levels of LNG without consideration of the impact on consumers.
“While we strongly support the administration’s commitment to advancing the deployment of renewable energy, we understand that nearly half of all U.S. homes currently rely on natural gas for heat. In its 2021-2022 Winter Fuels Outlook, the U.S. Energy Information Administration (EIA) estimated that energy costs for natural gas-fueled homes will increase by 30 percent over the course of this winter. Homes in colder regions, such as New England and the Midwest, will see even larger increases in their heating bills,” wrote the lawmakers. “Despite the heavy burden rising natural gas prices has placed on American families, the U.S. is exporting record levels of natural gas to other countries, a trend that is only expected to continue.”
“When establishing U.S. LNG export policies, we understand there are geopolitical factors and global and regional markets to consider. This includes recent calls for U.S. exporters to provide additional volumes of natural gas to Europe amid increased threats of a Russian supply disruption. However, the Administration must also consider the potential increase in cost to American families because of higher export volumes,” continued the lawmakers. “Therefore, we 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.”
In addition to Senator King, the letter to U.S. Secretary of Energy Jennifer Granholm was signed by Senators Jack Reed (D-R.I), Elizabeth Warren (D-Mass.), Ed Markey (D-Mass.), Debbie Stabenow (D-Mich.), Tina Smith (D-Minn.), Richard Blumenthal (D-Conn.), Patrick Leahy (D-Vermont), Gary Peters (D-Mich.), and Sheldon Whitehouse (D-R.I.).
Senator King has consistently worked to help lower energy and heating prices for Maine people. In a hearing of the Senate Energy and Natural Resources Committee last year, he spoke out against increasing exports of LNG when more natural gas is desperately needed in Maine and across New England. Senator King has also been one of the Senate’s most vocal advocates for the Low Income Heating Aid Program (LIHEAP). He urged the administration to include LIHEAP aid in the American Rescue Plan, and announced that Maine would receive over $90 million – twice the average allocation – in 2022 LIHEAP funding thanks to increased investments included in the American Rescue Plan and Bipartisan Infrastructure Bill.
Full text of the letter can be found HERE and below:
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Dear Secretary Granholm:
As families across the country continue to face steep residential energy and heating costs, we urge you to take swift action to limit U.S. natural gas exports and examine their impact on domestic energy prices.
While we strongly support the administration’s commitment to advancing the deployment of renewable energy, we understand that nearly half of all U.S. homes currently rely on natural gas for heat. In its 2021-2022 Winter Fuels Outlook, the U.S. Energy Information Administration (EIA) estimated that energy costs for natural gas-fueled homes will increase by 30 percent over the course of this winter. Homes in colder regions, such as New England and the Midwest, will see even larger increases in their heating bills.
Despite the heavy burden rising natural gas prices has placed on American families, the U.S. is exporting record levels of natural gas to other countries, a trend that is only expected to continue. Reports indicate that in December U.S. liquefied natural gas (LNG) exports topped 7.7 million tons, for the first time making the U.S. the world’s leading LNG exporter. And on December 9, the EIA issued a report indicating that the U.S. is on track to have the largest LNG export capacity in the world by the end of 2022. With this increased capacity, exports will only continue to grow in the coming years.
At the same time, LNG exports are decreasing the surplus for the U.S. market, as the EIA predicts that this year natural gas inventories will reach a full 159 billion cubic feet below its previous five-year average. Projections of exponentially increased U.S. exports will cause real harm to American families’ ability to pay their home energy bills.
When establishing U.S. LNG export policies, we understand there are geopolitical factors and global and regional markets to consider. This includes recent calls for U.S. exporters to provide additional volumes of natural gas to Europe amid increased threats of a Russian supply disruption. However, the Administration must also consider the potential increase in cost to American families because of higher export volumes.
Therefore, we 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. We believe this is in the interest of our constituents and people across the country who are already struggling to pay their energy bills.
Please don’t hesitate to reach out to our offices with any questions. We look forward to receiving a prompt reply.
Sincerely,