American Oil and Gas Reporter - January 2022 - 16

IndustryDigest
New York City Law
Prohibits Gas Usage
In Most New Buildings
NEW YORK-Citing a need to cut
greenhouse gas emissions, New York
Mayor Bill de Blasio on Dec. 22 signed
Int. 2317-A, legislation passed by the
New York City Council to prohibit
natural gas combustion in the city's new
buildings and, with a few exceptions,
deny construction documents and
permits for new buildings that require
its combustion.
According to the council's website,
the law's requirements phase in to full
implementation after Dec. 31, 2027. Its
exemptions include buildings in which
50% or more of the dwelling units are
classified as affordable housing, along
with uses such as for emergency power,
commercial kitchens, laundromats and
other applications for which
electrification may not be a substitute.
The law also mandates a study on using
heat pump technology and the law's
impact on the city's electrical grid.
Press accounts indicate the ban
applies to buildings shorter than seven
stories constructed after 2024 and for all
other buildings three years later. In
media reports, American Gas
Association Chief Executive Karen
Harbert suggested the ban would
undermine alternative energy sources'
access to pipelines. " We share the
commitment to greatly reducing
emissions, but the pipelines that deliver
natural gas today and zero-carbon fuels
like hydrogen and renewable natural gas
in the future will be essential to meet
any environmental goal, " she is quoted.
The Consumer Energy Alliance
warns that the measure will cost New
Yorkers dearly. The Alliance cites a
calculator it has developed that uses
open-source data to estimate what a
typical New York household can expect
to pay as under such policies. " If
forced onto families, the cost to
consumers would be astronomical, "
CEA cautions. " Depending on the
appliance models, home configuration,
labor and reliance on natural gas, an
energy ban could cost more than
$25,600 for a New York City
household. These findings dovetail
with previous research performed by
CEA, which found that the cost to
replace just major gas appliances in
homes nationwide would be more than
16 THE AMERICAN OIL & GAS REPORTER
$250 billion. "
According to Pipeline & Gas
Journal, before the city of 8.8 million
residents established the new law, San
Jose, Ca.-home to about 1.0 million-
was the largest U.S. city to ban gas in
new buildings. The Journal notes that
gas-fired generation accounts for 45%
of New York state's electric power, but
adds that the state passed a law in 2019
to require all electricity to come from
carbon-free sources by 2040.
Council Member Alicka AmprySamuel
sponsored the legislation. Press
accounts note that the Biden
administration has tapped her to serve
as a regional administrator at the
Department of Housing and Urban
Development. ❒
European Commission
Goes After Natural Gas
BRUSSELS, BELGIUM-In a set of
moves that it said was aimed at slashing
European Union greenhouse gas
emissions, the European Commission in
mid-December adopted several
legislative proposals it touts as
promoting uptake of renewable and low
carbon gases. It also proposed that longterm
natural gas contracts last no longer
than 27 years.
Many media accounts characterize
the move as a swipe at Russia, which
reportedly supplies the EU with a third
of its natural gas imports.
Nevertheless, considering export
analyses, including data from the U.S.
Energy Information Administration,
reveal the ascendency of U.S. LNG
exports, consequences also are likely in
U.S. markets.
" In order to avoid locking Europe in
with fossil natural gas and to make
more space for clean gases in the
European gas market, the commission
proposes that long-term contracts for
unabated fossil natural gas should not
be extended beyond 2049, " the EU's
executive arm states.
It also says the new rules will make
it easier for renewable and low-carbon
gases to access the existing gas
infrastructure, while also creating a
certification system to track a gas
supply's full GHG footprint.
A commission press release
emphasizes that the moves are based on
environmental priorities although it
acknowledges the steep energy prices
that have dogged the continent in late
2021 and early 2022. Nevertheless,
Commissioner for Energy Kadri Simson
insists the moves will help energy
consumers. " Our proposals also
strengthen the security of gas supply and
enhance solidarity between member
states to counteract price shocks and
make our energy system more resilient, "
she asserts. " As requested by member
states, we improve the EU's gas storage
coordination and create the option for
voluntary joint purchase of gas reserves. "
❒
U.S. LNG Exports
Leading The World
Reports Indicate
WASHINGTON-The U.S. Energy
Information Administration predicted in
December that the United States would
possess the world's largest liquefied
natural gas export capacity in 2022.
Then, in early-January, ship-tracking
data from ICIS LNG Edge reported that
the country already was exporting more
LNG volumes than any other country.
During the first week of January,
ICIS calculated that U.S. LNG exports
exceeded 7 million tonnes in December,
placing it above Qatar and Australia.
Moreover, the firm suggests, that status
does not appear likely to prove a shortterm
fluke.
Although Australia's 79.28 million
tonnes led the world for the entirety of
2021, ICIS says, " The US could become
the largest global producer in 2022 and
come close to 80 million tonnes, in part
depending on the ramp-up process at
Venture Global's 11.3 million tonnes a
year Calcasieu Pass plant. "
EIA called attention to its capacity
projections with a Dec. 9 report.
According to EIA, once new
liquefaction trains at a pair of Louisiana
facilities, including the Calcasieu Pass
plant ICIS references, come on line, the
United States will have the world's
largest LNG export capacity.
U.S. LNG export capacity has grown
rapidly since the Lower 48 states first
began exporting LNG in February 2016,
EIA observes. In 2020, the United States
became the world's third-largest LNG
exporter, behind Australia and Qatar.
EIA cites announced project plans
for a pair of export capacity additions
American Oil and Gas Reporter - January 2022

Table of Contents for the Digital Edition of American Oil and Gas Reporter - January 2022
