A group of Democratic lawmakers is asking Energy Secretary Jennifer Granholm to restrict the amount of liquefied natural gas that U.S. producers ship to lucrative overseas markets such as Europe, even while the Biden administration works to shore up energy supplies for the allies on the continent.
The 10 senators, most of whom represent New England, asked Granholm on Wednesday to “take swift action to limit U.S. natural gas exports” and to look into how record LNG exports are contributing to higher gas prices at home.
DAILY ON ENERGY: MINNESOTA REPUBLICAN SAYS BIDEN’S SELF-SABOTAGING WITH MINE OPPOSITION
“When establishing U.S. LNG export policies, we understand there are geopolitical factors and global and regional markets to consider,” the lawmakers wrote. “However, the administration must also consider the potential increase in cost to American families because of higher export volumes.”
Seven of the 10 senators represent New England states, which have seen energy prices spike significantly year over year. Wholesale power prices in the region averaged $59.42 per megawatt-hour for December, a 42% increase compared to 2020, while day-ahead prices rose 62% year over year.
At the same time, domestic producers have been scaling up exports, leading the world in LNG shipments in December, and shipping a record amount of gas last month.
The call for restrictions coincides with the Biden administration’s effort to develop contingency plans for Europe’s energy supplies in the face of the Russia-Ukraine conflict. Europe could face blackouts if supplies of Russian natural gas were disrupted in the event of an invasion, and European countries were already paying record amounts for energy before the conflict escalated.
Administration officials, including Biden himself, have hinted they support shipping more U.S. LNG to Europe in light of the circumstances, aside from working with other gas producers to find ways to help out their allies.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Notably, the Biden administration already slapped down a similar request by a number of the same lawmakers to impose a ban on crude oil exports when gasoline prices reached multiyear highs late last fall.
