A new study shows that the popularity of U.S.-based liquid natural gas (LNG) continues to rise despite the efforts of environmentalists and the Biden administration to promote unreliable renewable energy.
The survey by Wood Mackenzie, a global provider of data and analytics for the energy industry, found LNG demand in Asia was expected to double by 2050, providing countries with an affordable alternative to coal, the region’s dominant electricity source.
“Without certainty of an affordable supply, their fallback position, quite understandably, is to stick with a fuel they are familiar with and which they know is likely to be inexpensive and plentiful: coal,” said Paul Everingham, the CEO of Asia Natural Gas & Energy Association (ANGEA), which commissioned the study.
The United States is the world’s largest exporter of LNG. According to the U.S. Energy Information Administration, it sent 20.9 billion cubic feet daily to other countries. Exports surged in 2022 as the world pivoted from Russia’s LNG after it invaded Ukraine.
The administration threatened that surge last January when it enacted a temporary pause on new LNG exports and halted approvals of new export terminals. The administration said it was needed to tackle climate change and reduce carbon emissions. A federal judge issued a preliminary injunction over the summer.
While the incoming Trump administration is expected to revoke the temporary pause, ANGEA hopes the move happens sooner rather than later. The survey said the U.S. LNG could make up to 33% of the global supply by 2035 if planned and proposed projects are developed.
Developing nations like Bangladesh, Thailand and Indonesia face particular challenges.
The Wood Mackenzie analysis warned that those Asian economies and the environment would suffer if the American LNG pause took effect. The survey predicted a jump in LNG prices as Asian buyers shift to less-competitive markets instead of the United States.
That would force countries to rely on coal, which is cheaper to produce but worse for the environment.
Despite claims from environmentalists that wind and solar-produced energy can and would eventually take over for fossil fuels, Wood Mackenzie officials believe that’s not feasible.
“Bangladesh, for example, is densely populated, which makes developing renewable projects difficult close to demand centers. Meanwhile, countries such as Thailand and Indonesia have limited ability to harness onshore wind power due to low wind speeds,” said Robert Liew, Wood Mackenzie’s director for Asia renewables research.
Craig Stevens, a spokesman for the GAIN Coalition, said the LNG pause needed to end so energy infrastructure projects could restart.
“America is blessed with tremendous energy resources, and it would be wise to develop those resources to strengthen the U.S. economy and power our allies, instead of forcing them to buy their energy from other countries,” he said.
Taylor Millard writes about politics and public policy for InsideSources.com.
