The US Department of Energy has questioned the feasibility of expanding LNG exports from the country, according to Western media sources citing the department, Report informs.
The continuing rapid growth of the LNG industry risks increasing domestic fuel prices, which would harm American consumers, and lead to increased greenhouse gas emissions.
These conclusions could open the door for legal challenges that would hinder LNG export growth from the US, even though President-elect Donald Trump is taking office with promises to supply American gas worldwide for the country's "energy dominance."
In 2023, the US surpassed Australia to become the world's largest LNG exporter, supplying 11.9 billion cubic feet per day. This volume is sufficient to meet the combined gas needs of Germany and France. The industry had ambitious plans to double exports by the end of the decade.
The Department of Energy report projects that increased LNG supplies could lead to a more than 30% increase in wholesale domestic natural gas prices by 2050 under one scenario that considered "unrestricted exports." This would result in household electricity bills increasing by more than $122 per year.
Oil and gas industry specialists believe LNG exports benefit the climate by replacing dirtier coal in power generation.
However, the study showed that additional American LNG exports would largely displace renewable energy sources worldwide rather than coal.
Meanwhile, direct emissions from the industry would reach 1.5 gigatons annually by 2050 - about a quarter of current total US emissions.