ANGEA DOE submission: US LNG is ‘critical’ to Asia’s future

The submission, responding to the DOE’s 2024 LNG export approvals ‘pause’ and LNG Export Study, highlights the significant contributions of US LNG to Asia’s evolving energy landscape, across a range of key areas:

• Energy security: Any return of the 2024 pause on export approvals will create supply gaps and pose challenges for nations that rely on US LNG for energy.
• Supply chain disruptions: Nations in Asia – particularly emerging economies – would lose a key source of energy diversity if US LNG supplies were to be constrained or reduced.
• Decarbonisation progress: Disruptions to US LNG supply would lead to increased coal use in Asia, delays in efforts to reduce emissions and reduced air quality in urban centres.
• Renewable energy integration: A reduction in LNG supply would hinder the ability of countries to balance their power grids while increasing renewable energy capacity.

ANGEA CEO, Paul Everingham, said the submission was supported by a 2024 study by Wood Mackenzie, which demonstrated any longer-term extension to the US LNG approval pause would lead to significantly increased coal use in Asia.

As part of the ANGEA-commissioned study, Wood Mackenzie projected Asia’s LNG demand would nearly double by 2050 – provided US approvals resumed, and production continued to grow.

“Wood Mackenzie is a leading provider of data and analytics for the energy sector and has decades of experience studying the energy circumstances of Asia,” Everingham said.

“Wood Mackenzie’s findings about the consequences of an extended approvals pause in the US were stark. If this were to eventuate, global LNG prices would rise above the levels most emerging Asian nations can afford and they would revert to using coal.

“The study showed a 30% drop in demand for LNG from emerging Asia would lead to up to 95 million tpy of additional coal being used by 2035.”

Everingham thanked the Department of Energy for the opportunity to make a submission in response to the LNG Export Study.

“Given the importance of US energy supply for Asia, we welcome the chance to provide data-driven insights on the future outlook for our region,” Everingham added.

“US LNG is used extensively by not only established trading partners such as Japan, Taiwan, South Korea and Singapore but increasingly by emerging economies like India and the nations of Southeast Asia.

“The Trump Administration’s resumption of export approvals is welcomed by every country in Asia. It’s extremely important that this support for the US LNG industry continues.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/20032025/angea-doe-submission-us-lng-is-critical-to-asias-future/