4. LNG:

Coalition launches in anti-export battle

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Opponents of broad natural gas exports have formed a new interest group to channel their advocacy in Washington, D.C., and online.

Details of where America's Energy Advantage stands on liquefied natural gas exports have yet to be worked out, but the coalition -- made up of Dow Chemical Co., the American Public Gas Association, aluminum manufacturer Alcoa Inc., Eastman Chemical Co., materials company Celanese Corp. and steelmaker Nucor Corp. -- was formed around a shared interest in keeping domestic natural gas at home.

"Exporting America's low-cost natural gas is actually one of the least valuable uses for this resource," said Ray Ratheal, director of energy and climate change policy for Eastman Chemical. "Exporting value-added products, instead of the low-cost resource, will benefit the broader economy and enhance America's energy security."

The group's first target is an economic study, released in December by the Department of Energy and described by officials as an important contributor to its thinking on natural gas exports, which the study found to be a net benefit for the domestic economy (EnergyWire, Dec. 6, 2012).

On its website, America's Energy Advantage encourages visitors to file a formal comment calling on DOE to disregard the study, citing its reliance on 2-year-old data and the economic value of exporting manufactured goods rather than raw materials.

The group also marked its formal launch with publication of a public opinion survey illustrating the accessibility of its message. The poll, which surveyed just more than 1,000 registered voters and had a 3-point margin of error, showed that respondents overwhelmingly support the idea of using U.S. natural gas for domestic manufacturing over allowing "unrestricted" exports.

In a news briefing yesterday, Peter Molinaro, head of government affairs for Dow Chemical, said the coalition was not likely to collectively comment on the DOE study. The group also does not have a joint position on whether DOE should issue additional permits for LNG exports to non-free-trade partners.

"We do believe there's an amount of LNG exports that would be good for everyone," said George Biltz, Dow's vice president of energy and climate change. "Five [billion cubic feet per day] by 2025 is going to be within the sweet spot for this country," he added, citing a number that would amount to three to five large export projects such as those currently awaiting DOE approval.

But Stephanie Daigle, a government affairs expert with Celanese, said her company was in the early stages of its analysis on the issue and had not determined whether such a "sweet spot" exists.

The group's most formidable opposition lies not with public opinion but in powerful interests on the other side of the issue.

In a news release targeting the group's launch, American Petroleum Institute President Jack Gerard said, "Short-sighted efforts by a few industrial users to restrict exports in an apparent attempt to control prices would deprive American families of the wider benefits of lower costs and increased job creation."

Describing abundant domestic natural gas as a booster for manufacturing via the lower energy and raw material costs that it brings, he said, "Restricting exports of energy as a 'strategic resource' makes no more sense than unnecessarily restricting the export of chemicals, agriculture products or cars, and such a backward move could violate international trade rules."