Republican News

Republican News

Feb 15 2005

UNITED STATES MUST BUILD LNG PORTS TO AVOID SPIRALING NATURAL GAS PRICES, DOMENICI SAYS

New study warns prices could double by 2020 if U.S. doesn’t act

Washington, D.C. – Senate Energy & Natural Resources Chairman Pete V. Domenici today reaffirmed his support for a strong federal role balanced by state input in siting ports for Liquefied Natural Gas. He noted that a study released yesterday by the American Gas Foundation predicts the price of gas could double over the next 15 years if the United States doesn’t take steps to increase supply and diversify sources of electricity. He made the following statement following today’s Senate Energy & Natural Resources’ energy subcommittee hearing on LNG chaired by Sen. Lamar Alexander. Chairman Domenici’s statement: “I would like to thank Senator Alexander for holding today’s important hearing. I respect the challenges we face around the country regarding the siting of LNG ports. I have my own reservations about increasing our reliance on foreign natural gas. I have seen what our heavy reliance on foreign oil has done to our economy, our self-reliance and our national security. “But we have some difficult choices ahead that require federal leadership. The Energy Information Agency tells us we must increase our importation of LNG nearly 30-fold by 2025 to meet domestic demand. The American Gas Foundation yesterday warned that natural gas prices could double in the next 15 years if we don’t increase domestic production, build LNG ports and diversify our sources of electricity. “I am deeply concerned by these warnings. I do not want to wait until this economy is in a recession driven by high energy prices before we act. The federal government must take the lead in educating the public on the facts of LNG. We must take the lead in educating special interest groups who complain about any new energy production. We must take the lead in crafting a procedure for siting LNG ports that appropriately balances state and local input with national interests.” ###