Approximately 900,000 jobs could be at risk if there is an ongoing pause in liquefied natural gas (LNG) export licenses, according to a new report from the National Association of Manufacturers (NAM).
In January 2024, the Biden administration announced a ban on pending LNG export approvals to non-free trade agreement countries until the Department of Energy can update the underlying analyses for authorizations. Conducted in partnership with PwC, the NAM report Quantifying America’s Economic and Energy Opportunity through LNG Exports quantified the current and projected economic contributions of U.S. LNG exports, along with the economic losses should the ban on U.S. LNG export approvals move forward.
The NAM report found that robust LNG export activities could contribute up to $216 billion to U.S. GDP and generate $46 billion in tax revenue in 2044 if projects proceed as planned. The report said that U.S. LNG exports support 222,450 jobs, resulting in $23.2 billion in labor income. Meanwhile, the LNG industry contributes $43.8 billion to U.S. GDP and generates $11 billion in federal, state and local tax revenues.
“With LNG exports, we do not have to choose between what’s good for the economy and good for the planet. Today’s research shows the massive opportunity America has when we unleash our economic and energy potential. LNG exports also play a key role in meeting clean energy goals. But clamping down on our energy sector unnecessarily puts jobs and economic growth at risk, while pushing other nations to use higher emissions alternatives,” NAM President and CEO Jay Timmons said. “Building LNG export facilities and expanding natural gas production are not just good for our industry—they also cut emissions and help power manufacturing around the world.”
However, a pause in LNG exports could threaten economic stability. The report indicated that if there is an LNG export ban, between 515,960 and 901,250 jobs could be threatened. This would result in $59.0 billion to $103.9 billion in labor income being at risk if the ban on U.S. LNG exports continues through 2044.
Further, an LNG export ban would stifle between $122.5 billion and $215.7 billion in annual contributions to U.S. GDP during the same period and put between $26.9 billion and $47.7 billion in tax and royalty revenues at risk in 2044.
“The Biden administration’s ill-advised decision to stop LNG exports could cost Americans dearly, while leaving our geopolitical allies—particularly in Europe—out in the cold,” Timmons added. “The data is clear: halting LNG export licenses puts nearly a million jobs at risk. The LNG freeze also deprives us of an important tool of soft power to bolster trading partners who share our values. This study provides policymakers—present and future—a clear path to create jobs and hundreds of billions of dollars in economic growth by harnessing America’s abundant supply of LNG.”