Energy at a Glance: The Importance of Liquefied Natural Gas (LNG)

Published June 16, 2022

President Joe Biden has called for the United States to increase exports of liquified natural gas (LNG) to Europe in order to help U.S. allies wean themselves from Russian natural gas. Unfortunately, the Biden administration’s climate policies have directly subverted this goal, as well as the U.S. energy dominance carefully crafted under the Trump administration.

A previous report by The Heartland Institute, “The History and Importance of U.S. Liquefied Natural Gas (LNG),” served as a primer on LNG and discusses the transition from the United States being a net importer to a net exporter of LNG. This paper discusses the current status of LNG exports and how government policies impact the U.S. LNG industry.

Quick Bullets

• LNG export terminals are currently operating at 89 percent of peak capacity.

• In February 2022, America was exporting around $114 million of LNG every day.

• U.S. LNG export expansion would increase jobs, reduce the trade deficit, and decrease our allies’ dependence on natural gas from Russia, which would enhance geopolitical stability.

• The Biden administration stymied U.S. shipments of LNG to many nations from January 2021 through March 2022. • To the extent some modest increase in LNG exports is finally likely, the increase is largely the culmination of Trump administration efforts, which have been reduced by Biden administration policies, and is far less than American energy producers capable and willing to provide.