Exports of LNG May Raise U.S. Prices as Much as 54%, Agency Says
Bloomberg) -- Exporting liquefied natural gas may increase U.S. prices for the fuel as much as 54 percent, the Energy Information Administration said in a report sought by the Energy Department for its review of export permits.
The findings support manufacturers who oppose sales overseas, saying their production costs would rise. Sempra Energy, owner of the Cameron gas terminal in Louisiana, Freeport LNG in partnership with Macquarie Group Ltd., and Dominion Resources Inc. are seeking permits to ship the fuel, as hydraulic fracturing boosts production.
“Rapid increases in export levels lead to large initial price increases that moderate somewhat in a few years,” the agency said in the report. “Slower increases in export levels lead to more gradual price increases but eventually produce higher average prices during the decade between 2025 and 2035.”
After Cheniere Energy Inc. won a U.S. permit in May to ship gas from its Sabine Pass facility in Louisiana, manufacturers using natural gas, led by the Washington-based Industrial Energy Consumers of America, complained that sales to foreign countries may raise prices at home.
http://www.businessweek.com/news/2012-01-20/exports-of-lng-may-raise-u-s-prices-as-much-as-54-agency-says.html
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