The study measured US LNG contributions in two ways: during construction and operation of a terminal, and value added from US-produced gas, Vidas said. As a whole, when the two components were combined, the cumulative contribution to the US economy was about $50 billion/year, he said.
Identified employment measurements included direct, indirect, and induced jobs not just from construction and operation of LNG terminals, but also for manufacturing and selling components, Vidas said.
“In calculation terms, we started with EIA volume numbers,” he said. “By assuming 85% utilization, more plants would be built than with 100% utilization. But there are variables, such as demand, which might fluctuate. An estimated 84% of construction costs would be domestic. Certainly, the biggest demand for components would be immediate.”
Asked if global gas prices are uncoupling from those of crude oil, Vidas said that could be happening since long-term contracts which used crude prices as a reference are being supplanted by spot purchases in many cases. “The real question still will be whether there’s too much supply relative to demand,” he said.
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