US schedules LNG export liberalisation hearing

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From LNGWorldNews:

The Subcommittee on Energy and Power, chaired by Rep. Ed Whitfield (R-KY), has scheduled a hearing for March 25 to review H.R. 6, the Domestic Prosperity and Global Freedom Act.

In response to Russia’s recent aggression and DOE’s slow export approval process, Rep. Cory Gardner (R-CO) introduced H.R. 6 to expedite exports of U.S. liquefied natural gas (LNG) to U.S. allies.

The legislation would grant immediate approval of complete export applications currently filed with the Department of Energy and modify the process moving forward to ensure exports to U.S. allies are not subject to unnecessary delays.

The subcommittee will hear testimony from the former member of Congress and Chairman of the Appellate Body of the World Trade Organization James Bacchus, Hungarian Ambassador-at-Large for Energy Security Anita Orban, and NERA Economic Consulting Senior Vice President David Montgomery.

Some heavy hitters there but it’s pretty hard to believe that this would get up as a knee-jerk reaction to Crimea.

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the fouding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

Comments

  1. GunnamattaMEMBER

    I dont know about a knee jerk over Crimea, as much as an acknowledgement that means of coercing or influencing Russia are stuff all.

    As things currently stand the US has almost no leverage over Russia whatsoever (the US has surprisingly little direct trade with Russia), which has considerable leverage over the EU given the EU’s reliance on Russian gas.

    The weak point of the Russian position is its economy , which has been soft for a while. But their budget is reasonably in balance while crude is circa $105-110/bbl, and their market represents the best growth opportunity for a large number of European producers of (mainly) consumer goods (so the producers want to remain in the market). Their gas sales to the EU (much of which still goes through Ukraine and which would presumably be at some sort of risk now) is a major cash cow for the Russian economy.

    Apart from pushing US gas exports there is the idea of going hammer and tongs on Polands shale gas potential for much the same reason. The only issue there is that Russia could reasonably be in a position to undermine the economic fundamentals of any legitimate business case, meaning it would need to be a ‘strategic’ project. This would presumably see Russia focus more overtly on coming to a deal with China. They have been trying to get Kovykta up and running (just over the Chinese border) for some time. Word in Moscow is that there will be a major oil deal with China come May when VVP visits.

  2. Yeah, right.

    Even if it were to happen you’re looking at five years – Ukraine will need accelerate (and renew auction) shale potential plus could get LNG via Bosphorus within a year provided it can get Turkey to permit passage.