The Sierra Club's CD containing comments on the Draft Environmental Impact Statement for Trunkline Gas Company LLC's et al re the proposed Liquefaction and Pipeline Project under CP14-119 et al. (CD 3 of 3).

Made in America The economic impact of LNG exports from the United States A report by the Deloitte Center for Energy Solutions and Deloitte MarketPoint LLC Deloitte Center for Energy Solutions Contents 1 Executive summary 4 Overview of Deloitte MarketPoint Reference Case 8 Potential impact of LNG exports 11 Responses to raised concerns about LNG exports 2 Deloitte MarketPoint applied its integrated North American Power, Coal, and World Gas Model to analyze the price and quantity impacts of LNG exports on the U.S. gas market. Given the models assumptions, the World Gas Model projects a weighted-average price impact of $0.12/MMBtu on U.S. prices from 2016 to 2035 as a result of the 6 Bcfd of LNG exports. The $0.12/MMBtu increase represents a 1.7% increase in the projected average U.S. citygate gas price of $7.09/MMBtu over this time period. The projected impact on Henry Hub price is $0.22/MMBtu, significantly higher than the national average because of its close proximity to the prospective export terminals. The projected price impacts diminish with distance away from the Gulf. Distant market areas projected price impacts are less than $0.10/MMBtu. Focusing solely on the Henry Hub or regional prices around the export terminals will greatly overstate the total impact on U.S. consumers. The results show that the North American gas market is dynamic. If exports can be anticipated, then producers, midstream players, and consumers can act to mitigate the price impact. Producers will bring more supplies online, flows will be adjusted, and consumers will react to price change resulting from LNG exports. Made in America The economic impact of LNG exports from the United States 3 Executive summary Deloitte MarketPoint LLC (DMP) is pleased to provide an independent assessment of the potential economic impacts of LNG exports from the United States. Exporters might Deloitte MarketPoint applied its benefit from selling to foreign buyers, but how would such exports adversely impact domestic consumers of natural integrated North American Power, gas? Increased competition for supplies and accelerated resource depletion will likely raise domestic prices, but Coal, and World Gas Model to by how much? Will the level of exports being considered analyze the price and quantity raise prices enough to cause economic damage as some objectors contend? After all, natural gas is a depletable impacts of LNG exports on the U.S. resource, and what is exported is made unavailable to domestic uses. Under the assumptions outlined in this gas market. paper, we shall ...