RELEASE: Cloud and Cruz Introduce the Natural Gas Export Expansion Act to Expedite LNG Exports and Strengthen our Domestic Energy Security – Congressman Michael Cloud (.gov)

Report on the Natural Gas Export Expansion Act and its Alignment with Sustainable Development Goals

Introduction

A legislative proposal, titled the Natural Gas Export Expansion Act, has been introduced by Congressman Michael Cloud and Senator Ted Cruz. The act aims to reform the regulatory framework governing the export of U.S. Liquefied Natural Gas (LNG). This report analyzes the proposed legislation, with a significant emphasis on its potential contributions to the United Nations Sustainable Development Goals (SDGs), particularly in the areas of energy, economic growth, and international partnerships.

Core Objectives and Contribution to Sustainable Development Goals (SDGs)

The primary goal of the legislation is to eliminate regulatory hurdles to secure energy markets and foster economic stability. The act’s provisions are directly aligned with several key SDGs:

• SDG 7 (Affordable and Clean Energy): By facilitating the export of natural gas, the act aims to increase global access to a reliable energy source that can serve as a transitional fuel, helping partner nations move away from more carbon-intensive sources like coal.
• SDG 8 (Decent Work and Economic Growth): The expansion of the LNG export market is projected to stimulate domestic job creation and secure trade, directly contributing to sustained, inclusive, and sustainable economic growth.
• SDG 17 (Partnerships for the Goals): The legislation seeks to strengthen global partnerships by ensuring a stable energy supply for allied nations, fostering international cooperation for shared energy security and economic resilience.

Key Legislative Provisions

The act proposes several changes to the current LNG export approval process:

1. Streamlined Approval Process: Applications for LNG exports to non-free trade agreement (non-FTA) countries would be deemed “consistent with the public interest,” aligning their approval process with that of FTA nations. This measure supports SDG 7 by broadening the accessibility of energy resources.
2. Reduced Regulatory Barriers: The act intends to remove bureaucratic red tape, expediting the delivery of LNG to key international partners, such as the European Union. This enhances the objectives of SDG 17 by solidifying energy trade relationships.
3. Exclusion of Sanctioned Nations: The legislation explicitly excludes nations subject to U.S. sanctions from this streamlined process, ensuring that the policy aligns with international security and diplomatic protocols.

Economic and Infrastructural Impact

Alignment with SDG 8 and SDG 9

Proponents argue that the act will provide certainty for the U.S. LNG industry, driving investment and creating jobs. This directly supports SDG 8 (Decent Work and Economic Growth). Furthermore, the expansion of LNG export capabilities necessitates significant investment in infrastructure, including liquefaction facilities and port terminals, which aligns with SDG 9 (Industry, Innovation, and Infrastructure) by promoting resilient infrastructure and fostering industrialization.

Stakeholder Perspectives on Global Cooperation

Alignment with SDG 17

Various stakeholders have highlighted the act’s potential to reinforce international cooperation, a cornerstone of SDG 17 (Partnerships for the Goals).

• Port of Corpus Christi: The CEO noted the act’s role in connecting U.S. LNG to dependent countries, thereby strengthening both domestic and international energy security.
• Permian Basin Petroleum Association: The association emphasized that expanding exports provides reliable energy for allies, enhancing global energy security during periods of international instability.
• Center for LNG: The organization stated that the legislative certainty would help grow transatlantic energy cooperation and support allies worldwide, fostering robust international partnerships.

Analysis of Sustainable Development Goals (SDGs)

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy: The article’s central theme is the export of Liquefied Natural Gas (LNG) to provide “accessible and reliable energy for our allies abroad.” This directly relates to ensuring access to energy, a core component of SDG 7.
• SDG 8: Decent Work and Economic Growth: The proposed “Natural Gas Export Expansion Act” is explicitly aimed at securing “trade, and job markets,” with proponents stating it will “create jobs, and drive investment.” This aligns with SDG 8’s goal of promoting sustained, inclusive, and sustainable economic growth and productive employment.
• SDG 9: Industry, Innovation and Infrastructure: The article discusses the U.S. LNG industry and the infrastructure that supports it, such as the Port of Corpus Christi. The legislation itself is a regulatory change aimed at strengthening this industry and its associated infrastructure, which connects to SDG 9.
• SDG 17: Partnerships for the Goals: The act is designed to enhance international trade and cooperation. Phrases like “deliver LNG to some of our biggest customers, such as the European Union,” “supporting allies in Asia and around the world,” and growing “transatlantic energy cooperation” highlight the focus on strengthening global partnerships, a key aspect of SDG 17.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Under SDG 7 (Affordable and Clean Energy):
  • Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services. The article supports this by aiming to provide “accessible and reliable energy for our allies abroad,” thereby increasing energy security and access in other nations.
  • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The legislation promotes “transatlantic energy cooperation” and investment in the energy sector to facilitate exports.
• Under SDG 8 (Decent Work and Economic Growth):
  • Target 8.1: Sustain per capita economic growth in accordance with national circumstances. The act’s goal to “drive investment” and secure “trade… markets” is a direct effort to stimulate economic growth.
  • Target 8.5: By 2030, achieve full and productive employment and decent work for all. The legislation is explicitly intended to “create jobs” and secure “job markets” within the American energy sector.
• Under SDG 9 (Industry, Innovation and Infrastructure):
  • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being. The article mentions the Port of Corpus Christi, a key piece of infrastructure, and the act aims to ensure the certainty needed for the U.S. LNG industry and its infrastructure to grow.
• Under SDG 17 (Partnerships for the Goals):
  • Target 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system. The act seeks to remove “regulatory hurdles” and “red tape” and treat applications for non-free trade countries the same as free trade countries, promoting a more open trading system for U.S. LNG.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• The article does not mention any official SDG indicators. However, several indicators are implied by the goals of the legislation and can be used to measure progress:
• Implied Indicator for SDG 7: The volume of LNG exported to allied nations. An increase would suggest progress in providing “accessible and reliable energy” abroad.
• Implied Indicators for SDG 8:
  • The number of jobs created or secured in the U.S. LNG industry. This would directly measure the act’s success in fulfilling its promise to “create jobs.”
  • The total value of investment in the LNG sector following the act’s passage. This would measure its effectiveness in its goal to “drive investment.”
  • The contribution of LNG exports to the national GDP. This would measure progress towards sustained economic growth.
• Implied Indicator for SDG 9: The amount of investment in and expansion of LNG export infrastructure, such as at the Port of Corpus Christi. This would indicate the development of reliable infrastructure.
• Implied Indicator for SDG 17: An increase in the number of countries importing U.S. LNG or a reduction in the average approval time for LNG export permits. This would reflect a more open and efficient trading system as intended by the act.

SDGs, Targets, and Indicators Table

Source: cloud.house.gov