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Dow disputes US findings in LNG export study

12.07.2012  |  HP News

Dow Chemical says the recently-released report showing a positive economic impact is flawed, misleading, and based on outdated, inaccurate and incomplete data.


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"The report issued by the DOE on liquefied natural gas (LNG) exports is flawed, misleading, and based on outdated, inaccurate and incomplete economic data," said Andrew N. Liveris, Dow’s CEO.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.

Have your say
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Keith Bowers

Dow Chemical has reminded everyone the U.S. chemical and petrochemical industry adds tremendous value to the raw BTU content of LNG. The highest overall value to the U.S. economy is certainly as petrochem feedstock. We should not encourage any export of raw materials that we then import as higher valued products made from those exports. That scenario defines a 'Colony.'

Bill Mayer

Governments should not get into the price fixing game. Let the market forces determine the best use / profit to those who do the work to explore for these resources.

Bill Mayer

Governments should not get into the price fixing game. Let the market forces determine the best use / profit to those who do the work to explore for these resources.


He's right. And we should prohibit the export of plastic products to make them cheaper to industrial users too!

Don Koza

Perhaps there is some truth to both sides. There are many (mostly smaller) countries that import oil for generating electricity that would certainly benefit from a reliable lower cost LNG supply. The US would likewise benefit from the sales, as long as there is a stable supply for US industry. It is not "either or," but "both and."

I.F.J. Winterberg

Perhaps a free market, such as it is, should determine the ultimate use of this new abundant supply of natural gas and liquids. Yet Dow (and other domestic users) on one side and exporters on the other will expend their best lobbying efforts to influence government regulations to achieve their respective interests. So be it.


Fully agree and support the statements by Andrew N. Liveris CEO of Dow Chemical. In addition natural gas is needed for power generation and LNG for heavy truck fuel. Export of LNG is counter-
productive and undermines our national economic recovery.

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