WASHINGTON, D.C. – Today, U.S. Senator John Barrasso (R-WY) called on U.S. Secretary of Energy Ernest Moniz to promptly approve liquefied natural gas (LNG) export applications for the remainder of the Obama administration. Barrasso also urged the administration to do everything it can to stop the Russian-German Nord Stream 2 gas pipeline project from moving forward.

Moniz was testifying before the Senate Energy and Natural Resources Committee regarding the Department of the Energy’s budget request for Fiscal Year 2017. 

On the National Security Benefits of Increasing U.S. LNG Exports:   

“Mr. Secretary, good to see you again. I just noticed on Friday, the Wall Street Journal had a front-page story and it was titled: ‘Europe’s Energy Escape Valve: U.S. Gas’ so the escape valve for Europe for energy is U.S. gas. The ‘Gulf Coast exports are expected to loosen Russia’s grip on the market,’ that’s the sub headline and we talked about this. 

“The article discusses the first shipment of liquefied natural gas from the continental United States—it took place last Wednesday. 

“It explains that exports of U.S. liquefied natural gas will give countries—like Lithuania, Poland, Bulgaria—greater political independence from Russia. 

“As one Lithuanian mayor put it: ‘U.S. LNG is more than just about gas. It’s about freedom.’ 

“So the article goes on to cite the Deutsche Bank estimates that: ‘the U.S. could catch up with Russia as Europe’s biggest gas supplier within a decade, with each nation controlling around a fifth of the market.’ 

“It’s not going to be easy. 

“Russia controls about a third of Europe’s market right now and it may wage a price war, I read, to maintain its share of the market. 

“Iran is also interested in exporting LNG to Europe. 

“Senator Cantwell mentioned your role in the negotiations with Iran. 

“In January, the Wall Street Journal also ran a story front page of the business section: ‘Iran Seeks Ways to Ship Out Gas As Sanctions Ease.’ 

“So that article explains that Iran may be able to export LNG to Europe within two years. 

“So I’m concerned that Europe may develop a dependency on Iranian gas as it tries to reduce its imports from Russian gas. 

“That’s why I believe it’s critical that we continue to make U.S. liquefied natural gas available on the world market. 

“So the question is will you commit to acting promptly on LNG export applications for the remainder of this administration?

Follow Up: 

“The two-year idea came because the sanctions against Iran had stopped the construction of their LNG facilities. They have huge resources of natural gas and their thought was in terms of renewing the construction they could actually in two years get things going.

Click here for video of Sen. Barrasso questioning Sec. Moniz on U.S. LNG exports 

On the Russian-German Nord Stream 2 Gas Pipeline: 

“Along the line that you’ve been talking about, in terms of other sources, I’d like to turn to the Nord Stream 2 pipeline—which is one of those potential sources.

“This project, as you know, would run from Russia—under the Baltic Sea—directly to Germany. 

“The Nord Stream 2 would follow the path of the original Nord Stream pathway and would significantly boost Russia’s gas exports to Germany. So Russia playing an additional role. 

“Ten European countries—mostly from Eastern Europe—are asking the European Union to block this project. 

“These countries believe that this Nord Stream 2 will undermine sanctions on Russia, would increase Russia’s political leverage over Eastern Europe. 

“It’s estimated that this pipeline would cost Ukraine about $2 billion annually in natural gas transit fees that they would lose.

“Last week, Richard Morningstar—a former U.S. ambassador to the European Union—
said that this is a ‘really bad idea,’ the Nord Stream 2. 

“He went on to say that: ‘If you want to kill [Europe’s] LNG strategy, go ahead with Nord Stream [2].’ 

“So to date, Germany’s chancellor, Angela Merkel, has kind of defended the project. 

“We discussed this issue last October in the committee. 

“Since then, I’ve heard very little from top-ranking administration officials. 

“Does the administration have a plan to stop this project? And if so, what is it? 

Follow Up: 

“Let me be clear, I think President Obama should do everything he can to kill this Nord Stream 2. I just wonder whether the president has discussed this with Chancellor Merkel?”

Click here for video of Sen. Barrasso questioning Sec. Moniz on Russian-German Nord Stream 2 pipeline

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