Dow Chemical believes a recently-completed study showing a positive US economic impact from proposed LNG export projects is misleading and fails to give due consideration to the importance of manufacturing, the US-based company said on Friday.
"The report issued by the DOE on liquefied natural gas (LNG) exports is flawed, misleading, and based on outdated, inaccurate and incomplete economic data," said Andrew N. Liveris, Dows CEO.
"Manufacturing is the largest user of natural gas in the US, and creates more jobs and more value to the US economy from natural gas than any other sector," he continued.
"The value of every unit of energy used by the manufacturing sector is multiplied by as many as 20 times from the production of thousands of high value products though the value chain. Compare this to the 1-time value created by exporting energy as liquefied natural gas."
Liveris said the report also fails to consider the "tremendous competitive advantage" that cheap natural gas prices could offer to the US if held for domestic use.
"Instead, the report offers the baffling conclusion that the US would be better off using its domestic natural gas advantage to fuel growth and jobs in other regions versus strengthening the US economy through manufacturing and benefiting consumers with lower energy costs," Liveris said.
The CEO noted that numerous capital investments had already been made that were predicated on abundant and affordable natural gas, yet those were not reflected in the report. Dow Chemical, for example, is planning to build new ethylene and propylene capacity in the US Gulf region by the end of the decade.
"Unfortunately, policy makers have been given a flawed report that overlooks vital dynamics, including a manufacturing renaissance that is already underway and much needed by this country," Liveris said.