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Energy Department backs plan to export natural gas

BY MATTHEW DALY Published: May 18, 2013
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/articleid/3824931/1/pictures/2087731">Photo - The Excelsior arrives at the Freeport LNG terminal in Houston in April 2008. The Energy Department has given conditional approval to Freeport LNG Expansion L.P., based in Freeport, Texas, to  export liquefied natural gas, the second LNG export project the Obama administration has approved as it faces a wave of export requests. AP FILE PHOTO <strong>Steve Campbell - AP</strong>
The Excelsior arrives at the Freeport LNG terminal in Houston in April 2008. The Energy Department has given conditional approval to Freeport LNG Expansion L.P., based in Freeport, Texas, to export liquefied natural gas, the second LNG export project the Obama administration has approved as it faces a wave of export requests. AP FILE PHOTO Steve Campbell - AP

A drilling boom has lowered natural gas prices while boosting production by one-third since 2005. Production reached a high of 25.3 trillion cubic feet last year, according to the U.S. Energy Information Administration.

But production has begun to level off as the natural gas glut keeps U.S. prices down. Producers have pushed to export to Europe and Asia, where prices are higher. Approval of projects under review by the Energy Department could result in export of more than 40 percent of current U.S. natural gas production. The gas would be chilled to liquid form before being exported on tanker ships.

Marty Durbin, president and CEO of America's Natural Gas Alliance, an industry group, and Michael Smith, CEO of Freeport LNG, said expanded natural gas exports would help create jobs, stimulate the economy, and improve the U.S. balance of trade.

Consumer groups and some manufacturers that use natural gas oppose expanded exports, saying they could drive up domestic prices. Many environmental groups also oppose LNG exports, fearing more drilling could lead to environmental damage.

CONTRIBUTING: Chris Casteel, Washington Bureau


Our nation's reserves of natural gas have expanded rapidly in recent years, but production activities have declined significantly because of insufficient demand.”

Sen. Jim Inhofe, R-Tulsa,

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