Critics Warn LNG Export Growth Could Push U.S. Energy Prices Higher

Advocacy groups are warning that rising U.S. LNG exports could drive higher domestic energy prices, citing new analysis and recent court action involving a proposed Louisiana export terminal.

WASHINGTON (P&GJ) — Environmental and consumer advocacy groups warned this week that continued growth in U.S. liquefied natural gas (LNG) exports could drive higher energy costs for domestic consumers, citing new analysis and recent court action involving a proposed Louisiana export terminal.

During a media briefing, representatives from Sierra Club and Public Citizen pointed to a Louisiana state court decision that vacated a coastal use permit for Commonwealth LNG’s proposed export facility, as well as the state regulator’s subsequent reissuance of the permit. The briefing coincided with the release of a long-anticipated report from Public Citizen examining the inflationary impact of expanding LNG exports.

Eric Huber, managing attorney with Sierra Club’s Environmental Law Program, said the court ruling hinged on a lack of environmental justice and climate analysis. “The judge vacated the Commonwealth permit because it didn’t consider environmental justice or climate change, but instead of a good faith effort to fix it, the state agency re-issued the same permit with no changes and no public participation, basically doubling down on its prior conclusions,” Huber said. “We are planning to file a new lawsuit as early as Thursday, December 18th.”

Opponents initially viewed the ruling as a setback for LNG expansion, but noted that Louisiana regulators moved quickly to reinstate the permit. Panelists also criticized what they described as broader federal support for LNG development, citing backing from the administration, the Federal Energy Regulatory Commission (FERC), and the Department of Energy. In November, the U.S. House passed legislation aimed at limiting federal oversight of LNG expansion.

Tyson Slocum, director of Public Citizen’s Energy Program, argued that rising export volumes are already affecting domestic gas markets. “Eight LNG export terminals now consume more natural gas than all 74 million households with gas utility service,” Slocum said. “Twenty-five percent of all US gas production is now headed for export.”

Slocum added that export growth has translated into higher costs for consumers. “These record exports are causing an affordability crisis for American families,” he said. “American households have paid $12 billion in higher natural gas prices since Trump took office, amounting to $124 more per family.”

According to Public Citizen’s report, increasing LNG export volumes removes gas supply from the domestic market, contributing to higher prices for residential, commercial, and industrial users. The analysis also argues that higher gas prices could raise electricity costs, as gas-fired generation continues to account for a growing share of U.S. power supply.

Panelists concluded that while LNG export capacity continues to expand, policy and legal avenues remain available for communities seeking to limit or delay projects they believe could increase energy costs. A recording of the briefing is available through Gas Exports Today, a forum convened by the Louisiana Bucket Brigade.