Banning US LNG exports would be ‘highly destabilising’ says IHS Markit

Banning US LNG exports would be ‘highly destabilising’ says IHS Markit

Disrupting liquefied natural gas (LNG) supply would risk higher prices for domestic consumers, undermine US interests abroad and hinder global emissions reduction efforts, a new report from IHS Markit finds.

Curtailing US exports of LNG has recently been raised as an option to insulate US consumers from rising gas and power costs around the globe. However, an imposed disruption of LNG supply at a time of extreme stress in global gas markets would have a highly destabilising effect both politically and commercially. Such a move risks higher prices for US consumers while undermining US interests and emissions reduction goals abroad, according to a new analysis by IHS Markit.

“When markets are tight what is required is an assurance of steady, secure, reliable supply, and reliability for the agreements and relationships with other countries underwriting this supply,” said Daniel Yergin, vice chairman, IHS Markit and author of The New Map. “Proposals to limit or redirect supply only exacerbate tensions, add to uncertainty and market volatility, and undermine both investor and consumer confidence, as well as relationships with US allies and partner countries.”