Financial Times: Report gives green light to US gas exports

Exports of liquefied natural gas from the US have been backed by a government-commissioned study, setting the stage for politically contentious decisions over whether to allow increased foreign sales of the gas unlocked by the North American shale revolution.

The US Department of Energy requested the study as it evaluates applications to export more than 20bn cubic feet per day of gas, almost a third of the country’s output.

The shale gas boom has driven US production to record highs and prices down to just a quarter of their levels in Asia, creating tantalising arbitrage opportunities.

Industrial energy users have argued that allowing more exports would harm the US manufacturing renaissance fostered by low energy costs. The Industrial Energy Consumers of America, a group that opposes speedy approvals of LNG export projects, said the report had “serious weaknesses.”  MORE