Liquefied natural gas (LNG) is a critical component of meeting global energy needs, and current and planned facilities on the Gulf Coast of Texas and Louisiana play a crucial role in keeping up with LNG demand. The purpose of this commentary is to respond to the recent report from the Department of Energy related to LNG exports, specifically providing data related to the economic and fiscal benefits of relevant LNG facilities along the Texas and Louisiana Gulf Coast which could be affected by future permitting decisions.

The Perryman Group measured the total economic impacts of construction and ongoing operations of LNG facilities in the study area (Texas and Louisiana Gulf Coast) which are under consideration and have been designated as relevant by the Department of Energy for this inquiry. It is important to note that these facilities are only a fraction of the overall LNG industry, and thus the overall economic benefits of the industry and upstream effects are much larger.

Natural gas is crucial to meeting future energy needs and is essential to base electric generation capacity for the foreseeable future. From a geopolitical perspective, enhanced LNG exports reduce dependence on gas from nations that are potentially adverse to a stable world order.

Socioeconomic factors are clearly worth consideration in permitting decisions, as is meeting future needs for energy. With EIA and virtually all other forecasts indicating that the need for natural gas around the globe will continue to grow, the LNG market and US facilities are crucial to meeting future demand. As a result, it is evident that future LNG production is in the public interest and that there is a substantial valid rationale to approve and encourage further development.

For more details please refer to the full report.