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  LIQUEFACTION PROJECT BENEFITS
  Benefits of Liquefying and Exporting Natural Gas
 

As nations increasingly search for alternative sources of energy besides oil and coal for power generation and other applications—and move to regulate or tax carbon emissions—demand for LNG will continue to grow. The U.S. has an opportunity to expand its participation in the global market for natural gas, as the country’s more than one hundred years of reserves are well positioned to contribute to meeting this growing demand. Freeport LNG’s production and export of LNG represents a long-term economic stimulus to the nation’s natural gas-producing regions, including Texas and the entire Gulf Coast.

   
  LNG and the United States
 

Freeport LNG’s liquefaction facility and export terminal will take advantage of the huge natural gas reserves that have been unlocked in recent years to provide substantial job creation and economic stimulus to the U.S. at large. New natural gas production and export of LNG represents a long-term economic lift to the nation’s natural gas-producing regions and the overall US economy.

   
  LNG and the United States
Aerial view of the Freeport LNG Terminal
   
 

Key points regarding Freeport LNG liquefaction project's economic impact include:

  • The Freeport LNG liquefaction and export facility will result in total economic benefits to the American economy estimated to be between $5.1 and $7.4 billion per year.
  • The project is expected to indirectly create between 24,000 and 30,000 permanent additional jobs across the U.S. to support the exploration and production of natural gas to supply the project.
  • According to the U.S. Energy Information Administration, there is an estimated minimum 100-year supply of natural gas presently available in the U.S. The Freeport LNG liquefaction project will stimulate the further development of these reserves, particularly the shale gas plays that have emerged in Texas.
  • Having both import and export facilities for LNG can maximize the value and efficient use of the American natural gas production.
  • The Freeport LNG project supports US trade policy by increasing exports and promoting US trade ties overseas. Assuming an average LNG value of $7 per MMBtu, exporting approximately 2.0 Bcf/d of LNG will improve the United States balance of payments by approximately $4.6 billion per year, which is almost one percent of US annual trade deficit.
  • The projected impact on the market price for natural gas as a result of Freeport LNG exporting LNG is estimated to be minimal because of the enormous size of the US natural gas market.
  LNG & Texas
  LNG is a global commodity. Texas will benefit by monetizing its abundant gas reserves in the global energy arena. Texas exports approximately $163 billion annually and maintains a $35.4 billion trade surplus.  By exporting locally abundant natural gas, the state makes more efficient use of its resources while increasing their economic value. 
   
  The state’s natural gas pipeline infrastructure is well connected to abundant regional gas supplies, making the Freeport LNG terminal the ideal export facility for LNG. This project represents a major economic boon to the state, particularly the Gulf Coast region where much of the economic benefits and new jobs will be concentrated.
   
 

Freeport LNG’s terminal project on Quintana Island will create jobs and stimulate new economic growth within the state. Key points regarding Freeport LNG’s economic impact in Texas include:

LNG and Texas
  • Increased natural gas exploration and production will result in significant job growth in the energy sector and supporting services, benefitting the Texas economy, adding jobs and increasing tax revenues.
  • The Freeport LNG liquefaction and export facility will require over $14.0 billion of direct investment. Over its four- to five-year design and construction period, the liquefaction project will directly create more than 3,500 on-site engineering and construction jobs. Hundreds of off-site jobs will be created to support the facility’s design, fabrication and construction.
  • The ongoing management and operation of the fully built-up liquefaction facilities will create at least 160 new permanent positions.
  • Boosting Texas exports will provide further economic stability to the state.
  • Having both import and export facilities for LNG will increase the value and efficient use of natural gas resources produced in Texas.
  LNG & the Environment
  The U.S. Energy Information Administration has noted that “growing concerns about greenhouse gas emissions make LNG more attractive than coal,” and “new natural-gas-fired plants are much cheaper to build than new renewable or nuclear plants.” With an abundant supply of natural gas, the U.S. is well positioned to export LNG to countries around the world.
   
  Key points about the environmental benefits of LNG include:
 
  • The increased availability of LNG has enabled nations without sufficient indigenous supplies of natural gas to import LNG as fuel for power generating plants and other applications and to gradually displace less environmentally friendly fossil fuels.
  • According to the U.S. Energy Information Administration, natural gas produces roughly 50% less carbon dioxide than coal.
 
Freeport LNG is committed to environmental stewardship. In 2010, Freeport LNG was recognized for its environmental stewardship and community involvement activities by Keep Texas Beautiful, a nonprofit organization whose mission is to improve community environment. Keep Texas Beautiful awarded Freeport LNG with its Ebby Halliday and Maurice Acres Business/Industry Award, which is given to industrial companies with sound environmental principles.