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Expected Growth of U.S. LNG Exports to Support Nearly 500,000 Jobs Annually and Add $1.3 Trillion to United States Gross Domestic Product Through 2040, New S&P Global Study Finds
LNGCheniere(LNG) Prnewswire·2024-12-17 18:36

Core Insights - The U.S. liquefied natural gas (LNG) industry is projected to significantly contribute to job creation and GDP growth while maintaining low domestic gas prices [1][2][3] Economic Impact - U.S. LNG exports are expected to support nearly 500,000 domestic jobs annually and contribute 1.3trilliontotheU.S.GDPthrough2040[1][2]−ThestudyanticipatesthatU.S.LNGexportcapacitywilldoubleinthenextfiveyears,generatingover1.3 trillion to the U.S. GDP through 2040 [1][2] - The study anticipates that U.S. LNG export capacity will double in the next five years, generating over 2.5 trillion in total revenues for U.S. businesses and 166billioninfederalandstatetaxrevenues[2][5]−SincethestartofLNGexportsin2016,theindustryhasalreadysupportedover270,000jobsandgeneratedmorethan166 billion in federal and state tax revenues [2][5] - Since the start of LNG exports in 2016, the industry has already supported over 270,000 jobs and generated more than 400 billion in GDP [5][7] Domestic Gas Prices - The impact of growing LNG exports on domestic natural gas prices is expected to be negligible, with less than a 1% difference in average annual gas costs for U.S. households between the Base Case and Extended Halt Scenario [6][8] - Nearly 90% of U.S. gas supply remains available for domestic consumption, ensuring that household gas prices remain among the lowest globally [6][7] Future Scenarios - The Extended Halt Scenario, where no new LNG capacity comes online, could result in the loss of over 100,000 jobs, 250billioninGDPcontributions,and250 billion in GDP contributions, and 491 billion in revenues for U.S. businesses [8][9] - If the U.S. does not expand its LNG capacity, other countries like Qatar, Canada, and Mozambique are expected to fill the supply gap, potentially diminishing U.S. geopolitical influence [9][10] Industry Position - The U.S. has emerged as the world's leading LNG supplier, replacing a significant portion of Russian gas supply to Europe following geopolitical tensions [3][5] - The study emphasizes the importance of the U.S. LNG industry not only for economic benefits but also for enhancing U.S. influence as a reliable energy supplier globally [10]