WASHINGTON – Sen. Mark Udall, D-Colo., continued his push for expanded exports of liquefied natural gas at a U.S. Senate committee hearing Tuesday.
The hearing focused on the potential for the United States to export to Ukraine and many countries in Eastern Europe, countries that currently receive a majority of their energy from Russia. Proponents of exporting liquefied gas say it will provide greater global stability as well as boost the U.S. natural-gas industry.
“Our nation’s clean-burning and job-creating natural gas should and can play an important role in strengthening global security,” Udall said. “The ongoing crisis in Ukraine, which we are discussing here today and around the world, and Russia’s threat to use its natural-gas exports as a weapon, shows why we need to responsibly develop our own natural-gas reserves and expand our capacity to export this resource abroad.”
Currently, U.S. producers can export liquefied natural gas, an easily-transportable form of natural gas, only to countries that have free-trade agreements with the United States. Otherwise, requests for export must be approved by a sometimes-lengthy Department of Energy process.
On March 5, Udall introduced a bill that would allow natural-gas exports to any member country of the World Trade Organization. A similar bill was introduced in the House on March 6 by Rep. Cory Gardner, R-Yuma. A subcommittee hearing on Gardner’s bill also was held Tuesday.
At the Senate hearing, Udall said he intends to amend the foreign-aid package for Ukraine, currently being considered by the Senate, to include the provision opening up liquefied natural-gas exports to any WTO country.
The Senate hearing included testimony from the energy minister of Lithuania, a country whose entire energy supply comes from Russia. Jaroslav Neverovic talked about the high prices for energy charged by Russia and how U.S. natural-gas exports would provide competition and choice. Hungary’s ambassador-at-large for energy security testified in the House subcommittee hearing.
Udall spokesman Mike Saccone said immediate impact or relief for these countries was unrealistic because it takes years to approve facilities and get them going. However, Saccone said this illustrates why the United States should act now, so it can be in a place for future situations.
Natural gas, a nonrenewable resource that many claim releases less carbon dioxide than other fossil fuels, is found in deep underground rock. Most natural gas in the United States is found within shale formations, and its production has increased rapidly since 2000.
Shale gas is often withdrawn through a process called hydraulic fracturing, sometimes known as fracking. The process has environmental concerns if not done properly. Opponents say chemicals, waste and pollution have leaked into water supplies.
Udall understands the environmental problems associated with fracking and has stressed the need to support responsible and safe natural-gas development, Saccone said.
“This is a good industrial process when it is done safely,” Saccone said. “But one well contaminated or one person sickened is one too many. We need to be vigilant.”
Colorado is the sixth-highest producer of natural gas in the country, according to the Energy Information Administration, and produced over 1.5 trillion cubic feet of natural gas in 2013. According to the Colorado Oil and Gas Conservation Commission, La Plata County produced over 350 billion cubic feet of natural gas last year.
A consultant with the Colorado Oil & Gas Association said about 25 percent of Colorado’s natural gas is used in state, and the rest is sent to the West Coast and other states.
Tisha Schuller, president and CEO of COGA, said the state could increase its natural-gas production.
“With the right infrastructure in place, Colorado could certainly be a national leader in liquefied natural-gas exports, helping provide energy to areas of the world that currently are subjected to the whims of despots when it comes to heating their homes and powering their communities,” Schuller said.
The construction of Colorado’s first dedicated plant for liquefied natural gas, called LGN, was announced earlier this month. It will be built in Weld County by Noble Energy and is expected to be completed later this year.
“We are not aware of any other operators considering building LNG plants at this time, though I would not be surprised if they were considered in the future if LNG export legislation is further ushered along,” Megysey said.
Possibilities for production on the Western Slope exist. The Grand Junction Economic Partnership is working on a study exploring the possibilities that liquefied natural-gas exports would have for the Western Slope, including development of the Piceance Basin, which has one of the thickest shale deposits in the world. The study is due later this year, and was commended by Udall in a letter in January.
Katie Fiegenbaum is a student at American University in Washington, D.C., and an intern for The Durango Herald. Reach her at kfiegenbaum@durangoherald.com.
An earlier version of this story didn’t accurately quote Mike Saccone, who said, “one well contaminated or one person sickened is one too many. We need to be vigilant.”
