A recent analysis by Wood Mackenzie, commissioned by the Asia Natural Gas and Energy Association (ANGEA), warns that the U.S.’s pause on new LNG export projects could significantly hinder Asia’s transition to cleaner energy sources.
The report highlights that the U.S. moratorium on non-FTA LNG exports could lead to higher global LNG prices, making it more difficult for emerging Asian economies to shift away from coal and towards cleaner fuels. This could result in increased greenhouse gas emissions and slower progress towards climate goals.
The study emphasizes the importance of affordable and reliable LNG supplies for Asia’s growing energy demand. The U.S. has emerged as a major supplier of LNG, offering competitive prices and a reliable source of energy. However, the current policy stance could limit the country’s ability to meet future demand.
Wood Mackenzie predicts that if the U.S. maintains its current policy, emerging Asian economies may be forced to turn to less environmentally friendly alternatives, such as coal, to meet their energy needs. This could have significant implications for global climate change.
The report underscores the need for a balanced approach to energy policy that considers both domestic energy security and international climate goals. By lifting the moratorium on non-FTA LNG exports, the U.S. can play a crucial role in supporting Asia’s clean energy transition and promoting global energy security.
