Liquefied natural gas (LNG) is a critical source of energy for meeting exploding future global energy needs. It can also assist in achieving climate goals through replacing more emissions-intensive sources (such as coal). The United States is by far the largest producer and exporter of LNG, with new facilities coming online (including many along the Texas coast) which will enhance future capacity.

In essence, LNG facilities compress natural gas into a liquid form which can be transported by tanker and regassified at locations around the world. It is rapidly transforming the market for natural gas, which was once dictated almost entirely by pipeline routes, into a global phenomenon.

Under a variety of alternative scenarios regarding economic growth, costs of zero-carbon energy sources, energy prices, and other relevant parameters, continued expansion is anticipated. International demand for natural gas is increasing due to its favorable environmental properties as well as its potential role as a backup fuel to intermittent renewable energy. Developing economies around the world are also in need of low-cost, environmentally friendly fuels to facilitate growth, expand production, and alleviate extreme poverty.

Natural gas is also essential to electric generation capacity for the foreseeable future across the world. While renewable sources clearly have a vital and, indeed, essential role to play, their intermittent nature and ongoing lack of sufficient battery storage capacity requires backup generation capacity primarily fueled by natural gas. This requirement has been further enhanced of late by the rapid development of artificial intelligence (AI), massive data centers, and other emerging technologies (including those related to carbon capture and other emissions-reducing methods) which require unprecedented levels of power consumption. In Texas alone, requirements for power generation are expected to double over the next five years.

Beyond supplying needed energy, the LNG industry has a significant impact on the economies of the United States and Texas. Through their construction and operations, LNG facilities provide jobs, economic activity, and fiscal benefits. We have studied the effects on numerous occasions and found that construction and operations lead to billions in economic activity as well as substantial tax receipts to federal, state, and local government entities. They also support development of natural gas resources, which brings additional investment and employment opportunities.

US LNG exports are crucial to meeting future demand, and Texas is able to provide the necessary gas production, pipeline infrastructure, LNG facilities, ports, and terminals. In addition to ensuring sustainable global energy supplies, the industry provides a substantial economic and fiscal stimulus. It must be implemented in a responsible manner that recognizes and embraces climate realities, but the sheer quantities of energy that will be required mandate that an "all-of-the-above" strategy be implemented. Stay safe!