A study related from the The Department of Energy appears to offer overwhelming support for the country to begin exporting liquefied natural gas.
The US has been debating whether it should begin exporting some of the vast shale gas and coal- seam gas reserves that have been identified in recent years, or preserve its new bounty – and the incredibly low gas prices they have spawned – for internal consumption only.
The report will add significant weight to calls that the US should allow companies to take that cheap gas, convert it into LNG and sell it into considerably higher-priced Asian gas markets.
Such a move would directly threaten Australia’s LNG projects, potentially undermining the prices they can fetch for their output.
Across all these scenarios, the US was projected to gain net economic benefits from allowing LNG exports. Moreover, for every one of the market scenarios examined, net economic benefits increased as the level of LNG exports increased.