LAGCOE '15: Diamond Sponsor Cheniere Energy changing the energy market through LNG exports
LAFAYETTE -- Cheniere Energy is building the $20 billion Sabine Pass Liquefaction facility in southwest Louisiana. Construction, which began in 2012 and is expected to continue through 2020, is directly employing over 4,000 people.
This paradigm shift has brought many benefits—lower energy costs for consumers, a resurgence in American industrial investment, and now the opportunity to export liquefied natural gas (LNG). By cryogenically cooling and liquefying natural gas, companies can safely transport it to customers around the world—all while creating American jobs and economic growth.
Support for LNG exports has been broad and diverse, with business leaders, elected officials and citizens trumpeting the potential economic benefits. A bipartisan Congressional coalition has pushed federal regulators to expeditiously review and approve pending export projects. And, a study commissioned by the U.S. Department of Energy found unequivocally that exports of LNG will benefit the United States. The American Chemistry Council, the National Association of Manufacturers and the U.S. Chamber of Commerce have all endorsed LNG exports, arguing that free access to the global marketplace will create economic opportunity for Americans.
The debate over LNG exports has largely been decided in the nation’s capital; however, the benefits of expanded exports will be felt in communities from coast to coast. For those states where LNG export facilities are located, the economic benefits will be tremendous. In Louisiana, Cheniere Energy is building the $20 billion Sabine Pass Liquefaction facility, one of the largest industrial investments in U.S. history. Construction, which began in 2012 and is expected to continue through 2020, is directly employing over 4,000 people. When completed, the facility will create nearly 600 full-time jobs. A recent study by Dr. Loren Scott found that construction at Sabine Pass will expand business sales in Louisiana by $8.4 billion.
The economic benefits of LNG exports will extend well beyond the coastal states where facilities are built. Every 2 Bcfd of exported gas will support 50,000 jobs in the exploration and production sectors. This-far reaching benefit will be felt across the 32 states that produce natural gas. U.S. manufacturers will produce much of the equipment necessary to build LNG export terminals—steel, turbines, piping, compressors, electronic equipment, etc. One study estimates that LNG exports could support up to 452,000 jobs and contribute $73 billion in economic activity each year in the U.S.
LNG exports will also further America’s geopolitical goals. American LNG will provide a stable and secure energy source for our allies in Europe and Asia, many of whom are dependent on Russia and the Middle East for their natural gas supplies. From an environmental perspective, American LNG will displace fuel oil and other more polluting energy sources across the globe. Finally, LNG exports will have a significant impact on the U.S. trade deficit, with Cheniere’s Sabine Pass project alone reducing the deficit by $7 billion a year.
As we gather at LAGCOE to discuss the challenges and opportunities that face our industry, it is important to also note this exciting, global story unfolding right here on the U.S. Gulf Coast. Companies like Cheniere Energy have stepped to the forefront to build export facilities in the U.S.; customers around the world are clamoring for access to American natural gas; and, producers, service companies and manufacturers across the country are poised to reap the benefits.
