LNG exports bringing trillions of dollars to US economy

At the Rio Grande Foundation we have talked a fair amount over the years about the potential economic benefits of the US exporting Liquefied Natural Gas (LNG). While New Mexico’s booming production is a very big part of that equation and many economic benefits and a great deal of money has flowed to the Land of Enchantment, this is truly a boom for the entire nation.

A new S&P Global Energy study (as reported by Reuters) estimates that US liquefied natural gas exports could contribute $1.4 trillion to US GDP through 2040 and rank as the country’s second-largest net export industry within five years.

The industry is expected to attract more than $1 trillion in investment across the supply chain and generate $2.9 trillion in revenue, $206 billion in tax receipts and nearly $630 billion in labor income through 2040.

U.S. ​LNG can account ​for a ⁠third of the global market in five years, it added.

The US LNG export boom is beneficial to other nations as well. Prices in Europe ​and Asia could jump by 50% if ​the ⁠new U.S. export capacity is not realized, the study predicted.

It added that U.S. LNG exports could help ⁠stabilize ​domestic markets during peak demand, ​while infrastructure constraints remain the main driver of regional price volatility.