WASHINGTON – The United States, which currently supplies half of Europe’s liquefied natural gas (LNG) imports, would be disproportionately impacted if current restrictions on Russian gas and LNG were to change, according to a new S&P Global Commodity Insights study.
The report details that under an “Opening the Taps” scenario where U.S. sanctions on Russian natural gas pipeline and LNG exports are withdrawn, more than 17 million metric tons per annum (MMtpa) in new U.S. LNG projects would be curtailed compared to a “Current Trend” scenario. This represents $70 billion in related investment.
Conversely, a scenario with Europe increasingly “Phasing Down” Russian LNG and most piped gas would result in an additional 12 MMtpa in U.S. LNG projects reaching final investment decision, representing an additional $48 billion in related investment.
Previous reports found that the growth of U.S. LNG export capacity would support nearly half a million domestic jobs annually and contribute $1.3 trillion to U.S. gross domestic product through 2040 while having a negligible impact on domestic gas prices, and that the continued development of U.S. LNG export capacity would result in significantly lower global greenhouse gas emissions compared to the alternative energy sources that would be required to meet demand in their place.
“Any changes to restrictions on Russian gas flows to Europe would dramatically impact U.S. LNG in market share and investment,” said Carlos Pascual, Senior Vice President, Global Energy, S&P Global Commodity Insights.
S&P Global Commodity Insights gives a complete view of global energy and commodity markets enables their customers to make decisions with conviction and create long-term, sustainable value.
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