Up First from NPR - The Sunday Story: The Promise of America's Natural Gas
Episode Date: August 4, 2024The U.S. is the largest exporter of natural gas in the world. And Louisiana's Gulf Coast is where much of America's natural gas is piped in to be liquified for export.Over the last twenty years, liqui...fied natural gas (LNG) has been heralded as a clean and efficient "bridge fuel" for nations transitioning away from coal and oil, towards a future of renewable energy. But the promise of LNG has not reflected reality. In today's episode of The Sunday Story, WWNO reporters Halle Parker and Carlyle Calhoun talk about the impact of the LNG export industry on Louisiana's Gulf Coast. And they follow the supply chain of LNG all the way to Germany and Japan.To hear more of Halle and Carlyle's reporting on LNG, listen to their three-part series, "All Gassed Up," on the podcast Sea Change from member stations WWNO and WRKF.Part One: The Carbon CoastPart Two: The German ConnectionPart Three: The Sugar Daddy of LNGLearn more about sponsor message choices: podcastchoices.com/adchoicesNPR Privacy Policy
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This is a Sunday Story. I'm Aisha Roscoe.
What if I told you that the U.S. is the largest exporter of natural gas in the world?
It started with the fracking boom in the mid-2000s.
We, it turns out, are the Saudi Arabia of natural gas.
We've got a lot of it.
A lot of it. Enough to export.
Before NPR, I spent six years as an energy reporter,
and a big part of my job was covering the promise of natural gas. And we all know this fuel. It's
what you might use to cook your food or to heat your house. There's a form of this gas called
liquefied natural gas, or LNG. And that's when you take natural gas and supercool it, reducing its volume to a much smaller size, which makes it possible to load bridge fuel for the U.S. and the world, taking us closer to a future reliant on renewable energy.
It's been heralded as safe, clean and efficient.
Today on the Sunday Story, we look at what that promise has meant for one community in Louisiana where much of the LNG export industry is based, and how the promises
of LNG have not reflected reality. I'm joined by two reporters based in New Orleans, Hallie Parker
and Carlisle Calhoun. In their recent series, All Gassed Up, they follow the journey of LNG
from the Gulf Coast and on to Europe and Japan, where much of that gas
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We're back with the Sunday story.
I'm here with reporters Hallie Parker and Carlisle Calhoun from WWNO.
Welcome to the program.
We're happy to be here.
Thanks so much for having us.
So I know that Louisiana has always been a state with pretty close ties to the oil and
gas industry.
I mean, there's lots of, you know, offshore drilling and things of that nature.
But can you give me a sense of like what's going on now with, you know, with LNG?
You call it an LNG frenzy.
Like, how is this different? Or what's happening?
Yeah, so in the last few years, Louisiana has really become ground zero for the buildout of
LNG. You know, three of the country's eight LNG export terminals are here, and almost a dozen
more are potentially on the way. And that's all happening super fast. Yeah. And talking to Hallie about this issue, we were just struck by how massively this industry
is growing in our backyard. And after kind of digging in, we realized that this is both a local
and a global story because Louisiana really has become one of the biggest players in LNG in the
world. Yeah. And you mentioned Ayesha, Louisiana
has been an oil and gas state for such a long time. So those close ties to the industry really
set up Louisiana to capitalize on this growth of LNG. Also, just geographically, Louisiana is in a
good position. First, this natural gas gets fracked out of the ground in places like West Texas or
northwestern Louisiana.
And then that gas is piped down to export terminals along the Gulf Coast, where it's loaded onto these giant ships and carried to consumers across the world.
Let's start with the local side of this.
In your series, you really focused on one area.
It's a place called Cameron Parish.
What's it like?
Cameron Parish. It's this incredibly rural place. And you're really just struck by these fields of
green meadow and marsh. You actually have to be pretty careful. I had to be careful when I was
driving down there because of just the abundance of birds flitting through. It's this huge migration
area. Historically, this was a place where it had one of the largest
fishing industries in the U.S., and there still is a large fishing community there, looking for shrimp
and oysters and all of that good stuff. Now, the other major industry is oil and gas. You know, if
you look out into the Gulf, you can still see some of the oil platforms, and the industry has had a
presence here for over a century. So it's kind of the community's go-to when it comes to jobs. And then a few years ago,
Cameron Parish got a huge offer. This company called Venture Global LNG announced it was going
to build a massive export terminal on the Gulf there. And there were these big promises made
about all the benefits it would bring. Jobs with high salaries.
They said they were committed to protecting the environment and, you know, investing in the community.
And this was all part of a promise to be a good neighbor.
And it sounded really good.
They even told the public about this big plan to build a marina to serve the area.
And these were all things that this struggling parish could not afford. Yeah. So these promises sound really good.
This particular LNG terminal that was built in Cameron Parish, can you describe it for me?
Yeah.
So it's called the Calcasieu Pass Terminal.
And Hallie was saying, you know, Cameron Parish is this really rural, flat place.
And so you're driving through just
marsh and open space, and this facility just appears out of nowhere and dwarfs everything
else. It's spread over a thousand acres right on the water, just huge concrete structures and
pipes and also enormous LNG tankers docked in front. But probably the best person to answer
this question is this guy named John Allaire,
who we spend a lot of time with in the series. He's a retired environmental engineer. He actually
used to work for BP and other oil and gas companies. And he retired to what he calls his
paradise. You know, I love it. My whole family grew up here. But now the Calcasieu Pass export
terminal sits less than a mile away from his home.
And John has a lot to say about how life has changed.
I mean, it's just, it looks like you're looking at Las Vegas.
So there's a tremendous amount of light pollution.
There's the noise.
You can smell it.
And you can, you know, it just makes it hard to breathe.
It's way different than it was three or four years ago before all that was there.
It's not what it was, but I would imagine that the terminal has brought a lot of jobs to the area.
And often with projects like this, you'll have a lot of people that support it because they want, you know, the money brought into the area.
Is that the case here?
There are plenty of people who support the area. Is that the case here? There are plenty of people who support the
terminal. Cameron Parish has been going through some very tough economic times, plus repeated
hurricanes have also hit the area. And a lot of people have just packed up and moved away.
So some really see LNG as a kind of savior for the area. And a lot of these supporters were
pretty vocal at a town meeting I went to last fall.
The meeting was about how Venture Global wants to build another new export terminal right next
to the existing one. And this one would actually be twice as big. So this meeting was packed.
We heard supporters talk about how the company came to their aid after these back-to-back
hurricanes in 2020. In fact, the LNGs have done wonders for us. When
we had no schools, they brought portable buildings in for us to live in and for us to operate in.
When we look at our parish, we say, where would we be today if it wasn't for the LNG?
We have been the forgotten town for so long. Cameron needs this to survive and prosper.
Thank you. But then John Allaire, the retired environmental engineer, walked up to the
microphone with this whole different point of view. People are talking about no visual problems,
adventure global. That sound you're hearing is John slapping down these
big old bags of mud, one
after the other, taken from his property.
I have buckets of free samples
of it out in my truck if you want to see.
Black, viscous mud.
John says muck lined the
beach after Venture Global dredged for
construction. But the whole area,
that whole beachfront is ruined.
John says he believes the community is trading its very foundation,
you know, this place that it's built on, all for an industry that won't stick around after
the profits slow down. And there are other people like John, too, who feel that the jobs and the economic benefits to the area are exaggerated.
And also because these LNG companies are getting these really huge tax breaks.
So not as much money as you think comes back to the parish.
And John told us he thinks this scale of destruction of nature wouldn't be allowed to happen in other areas of the country.
He says we have the West Coast, the East Coast, and here, the Carbon Coast.
The Carbon Coast.
I mean, that really paints a picture of what's happening there.
So you have these local citizens documenting the environmental impacts, but I mean, aren't there federal and local environmental regulations
that this company has to comply with? Yes. So John, because one, he lives so close,
and also he has this background in environmental engineering, has kept a very close watch on the
plant that's right next door. I mean, he literally installed cameras to document the plant's operations. And that's things like flaring, which is when these plants burn off extra chemicals
or gas and release those into the air. Plants are allowed to do this, but it's only supposed to be
done for very short periods of time. But John takes pictures of flaring just about every day.
This was taken earlier this year. Where'd you take this? From
my patio here. From where we're standing from where your camp is, you're just watching them
flare all the time? Well, they aren't this morning, but it'll be very surprising if they
aren't by the end of the day. He ends up having what we describe as a daily diary of flares.
Way more flaring than what Ventra Global is allowed under its permit,
according to John's records. And for him, even what the plant is allowed to release is troubling.
And he read out this long list of chemicals from the permit.
You got sulfur dioxide, nitrous oxide. They're emitting carbon monoxide,
volatile organic compounds, which are toxic air pollutants and hazardous air
pollutants, 1,3-butadiene, acetaldehyde, acrylin, benzene. So he goes on and on with that, listing
off just different hazardous and toxic chemicals. And Venture Global is allowed to release those
chemicals up to a certain amount. As John puts it, a permit is a permit to pollute.
So John would call to report his concerns whenever he was concerned about the air quality.
But the state of Louisiana doesn't actually have any air monitors in Cameron Parish.
And there's really just so few monitors across the state generally.
So there's no real-time monitoring of the air.
So the state would take John's reports and sometimes send an officer to collect air data.
But sometimes the officer wouldn't be able to show up until several hours later, according to John, because this area is so remote.
The state really mostly relies on the company to self-report its own emissions and incidents.
Right. It would be fair to say there's an information gap there.
I mean, it seems like this is the sort of story that you hear with any fossil fuels concerns for
people around it. I remember people were very concerned about the fracking itself, which is
how they get the gas. Are the concerns of people like John being heard?
And is there anything being done to address these worries that people have?
Well, not a lot is being done at the state level. You know, Venture Global actually ended up
violating their permit over 2,000 times in their first year of operation, meaning they released
more pollution than they were allowed over 2,000 times.
And that was in part because they had a lot of operational issues, including blackouts
during that first year.
And while state regulators have ordered Venture Global to follow their environmental rules,
the company is saying those violations weren't their fault.
The state is still pursuing a compliance order, but Venture Global is
also asking state regulators to change their permit to allow them to release a whole lot more
pollution. Like flaring, for example. They've asked for their permit to allow over 800% more of it.
So Hallie's talking about the state level. At the federal level, there has been some action.
At the beginning of this year,
the Biden administration announced a temporary pause in approving further export permits.
And the pause was to stop new terminals from being built until they had a chance to study
the industry's impact. They're looking at impacts on local health, where these terminals are located,
also impacts to the climate and to the national economy, because exporting
all this gas makes our gas prices more volatile, which can mean higher gas prices for us.
That pause lasted just about five months. A federal court in Louisiana recently stopped it
after Louisiana and 16 other states sued over this pause. Still, the Department of Energy is
going forward with their review.
You know, the whole thing about natural gas and liquefied natural gas is that it's supposed to be a bridge fuel, right?
Like it was supposed to be something that had less emissions than coal that could be used on a big scale until you could get like renewables like, you know, solar and wind and all of these
things up and running. Like, what are the impacts of liquefied natural gas on climate change?
One of the main talking points of the LNG industry is that LNG is much cleaner than coal.
But there is a factor here that's not talked about as much, which is methane. LNG is much cleaner than coal. But there is a factor here that's not talked about as much,
which is methane. LNG is made up almost entirely of methane, and methane's what climate scientists
call a climate super pollutant. We spoke to this scientist named Debbie Gordon at the Rocky
Mountain Institute who studies methane emissions effect on climate change. And she told us with so
much focus directed at carbon dioxide emissions,
methane is often overlooked.
So while carbon dioxide remains incredibly important
because it lives for hundreds, if not thousands of years in the atmosphere,
like a blanket on the planet,
what methane does is right now, as soon as it comes out,
it puts 80 blankets on the planet.
And so you're super warmed.
80 warm blankets.
And methane stays in the atmosphere for up to 12 years.
And that is why not leaking is so very important.
But there is just so much leakage that happens during the process of liquefying and transporting the gas.
A recent study that's currently under peer review by Robert Haworth at Cornell University
shows that LNG could actually be twice as bad for the climate as coal.
I'm sure the industry is pushing back on that, right?
Yes, they are pushing back on this study.
Yeah, and we should say that we did try multiple times throughout this reporting process to talk with different oil majors, including Venture Global, and we did not get a
response. And actually, the oil and gas industry has been producing their own studies of climate
impacts from LNG, and they still claim that it's better for the environment than coal.
But what's clear is that the large-scale export of natural gas through LNG has created so many more opportunities for methane to leak.
When we come back, we follow LNG's life cycle across the world, from the Louisiana plants to places like Germany.
So we got these tankers leaving the Gulf Coast, going to places like Europe, right?
Yes, a lot of this LNG is headed to Europe.
And that really started when Russia invaded Ukraine two years ago.
Ukraine is under a state of emergency for at least the next 30 days.
And European countries panicked because so many of them relied on Russia to pipe over cheap gas to heat their homes.
And access to that gas started to become unreliable and ultimately shut down for the most part after a pipeline exploded.
Two underwater explosions large enough to register on the Richter scale near the Danish island of Bornholm.
European leaders believe this was not an accident. And that panic spurred the U.S.,
President Biden specifically, to promise to send more American natural gas to make up for the loss.
We're coming together to reduce Europe's dependence on Russian energy.
Yeah, I mean, Russia has used its supply of natural gas to Europe as a weapon at times. So having LNG from the U.S. was a huge
help to Europe. Absolutely. Almost half of Europe's natural gas came from Russia. And Germany was a
country that was especially hard hit. It was by far Russia's biggest customer. But Germany did
respond extremely quickly. There was this big push to
build out floating temporary import terminals to accept mostly American LNG. And to allow this
buildout to happen fast, the German parliament passed this big law called the LNG Acceleration
Act to allow environmental laws and public input to be bypassed. And it was a very un-German thing
to do because the German government does
have all these regulations when it comes to big infrastructure projects. Hallie and I actually
traveled to Germany because we wanted to understand this new relationship between Europe and the Gulf
Coast. And so we went there last fall. And while we were over there, we found this retired sea
captain named Joachim Martin, who lives in Wilhelmshaven,
which is a small town on the North Sea where the first import terminal in Germany was built.
And Jakin, of course, because he's a sea captain, knows how all these complicated marine traffic websites work.
And he's also concerned about the climate impacts of LNG.
So he tracks all the LNG ships that are coming into the port. And he gathered us around his computer, and he was able to show us that the vast majority of ships are coming from the Gulf Coast.
That's the first one that came?
That was the first one, yeah.
And it came from Sabine Pass?
Yeah, from Sabine Pass.
Freeport?
Texas.
Cameron?
Louisiana.
11.
Lake Charles?
Louisiana. 11. Nick Charles? Louisiana. 14. So these are familiar places. Cameron Parish,
Sabine Pass, basically where we just were on the Louisiana Gulf Coast. So like the U.S.,
many European nations have vowed to cut down on carbon emissions, to invest more in renewables. How long do they expect to rely
on LNG? That is a question we also had. You know, even in that first year of importing more LNG,
none of these import terminals operated at full capacity. In Germany, LNG is kind of a backup in
times of energy crisis, and they're still sticking
to their climate pledge and rapidly building out renewable energy projects. Germany actually
already gets more than half of their energy from renewables. Still, Germany has now invested a lot
of money in LNG infrastructure, and some critics do worry that that will keep the country hooked
on gas longer.
We spoke to Konstantin Zerger, who's with Environment Action Germany, about this.
Everybody knew that you can't really invest into new fossil infrastructure.
Time's gone.
So this is an unexpected opportunity to prolong the lifetime of the business model.
There is concern by environmentalists
like Konstantin that Germany is now part of this vicious cycle by building import terminals and
signing these long-term contracts that actually lock them into buying American LNG for up to 20
years. Germany's creating demand even though Germany doesn't actually need our LNG for long. So the question
then is, what will it do with LNG they promised to buy? And the answer is, they will simply start
selling it to other countries, and Germany will become an LNG middleman. Okay, so that takes us
to the next stop on your reporting journey, Japan. And it's a long way from Europe.
But talk to us about Japan's connection to the LNG industry and when that started.
Yes.
So Japan's interest in LNG goes way back.
Back in the 70s, there was the global oil crisis, which older folks might remember,
those massive lines to fill up their cars with gasoline.
People can no longer afford to run cars that do 12 miles to the gallon.
In the Dallas area today, dealers raised prices to more than 40 cents a gallon.
This gas line at one station on the Upper West Side ran from 96th Street and West End Avenue all the way up to 102nd Street.
Well, that oil crisis, it hit Japan super hard.
So they started looking for other energy options, and LNG was one of them. Japan's interest in major investments really played a major role in creating the global industry that we see today. We actually call it the sugar daddy of LNG in our series. So the LNG industry kept growing, and then in 2011, Japan struck by another disaster.
A major earthquake and then a tsunami hit. And they took out the Fukushima nuclear plant,
polluting this huge region with radiation, which had enormous consequences.
It qualifies as the second worst nuclear incident in the history of the nuclear age.
Nuclear had been the major source of energy for the country,
even considered a kind of fuel
of the future. Right after Fukushima, you know, I remember whole towns had to be abandoned. It was
this terrible tragedy. Exactly. And public opinion afterward was shut down the nuclear plants. So
after the disaster, Japan stops operation
at all of their nuclear plants, and they had a lot of them, almost 50. About a third of Japan's
electricity came from nuclear. So all of a sudden, like we were talking about in Germany,
they needed to find a new source of energy, and LNG looked better than ever.
So LNG was really big in Japan for a few years in that immediate aftermath.
But now that's actually changing.
Nuclear plants are coming back online and Japanese consumers are using less gas.
I don't think we've said this yet, but LNG is incredibly expensive.
You know, the entire process it takes to get to where it is. And I should say
Japan does still want LNG as a backup, but Japanese utility companies have now shifted their
gaze to other countries and have really developed a global strategy to ensure the future of their
investment in LNG. All right, so what's the plan then? Japan is still a huge player in LNG, right?
Yes.
And these Japanese gas companies that have also been given the green light by the government
have begun selling this idea of LNG to other poorer Asian countries
in kind of this bid to become a middleman.
And so that idea of gas being cleaner and more sustainable than coal,
in Japan, there's actually a slogan for it, coined by the Japan Gas Association.
Go gas-stainable.
Gas-stainable, short for gas and sustainable.
Sustainable society with gas, so gas-sustainable, so we named this slogan.
That's a catchy slogan.
But based on what you said earlier about emissions, it's pretty misleading, right?
Yeah, and talking to the Japan Gas Association,
you can see their banking on this LNG bridge not ending anytime soon.
Japan's push to get other countries hooked on LNG is extensive.
Different companies are subsidizing the build-out of gas infrastructure in Vietnam and India. But LNG is still incredibly expensive and volatile,
whereas the cost of wind and solar is far cheaper. Those emerging countries are also
looking at renewables, but it's still a question of which direction they'll choose.
So let's step back a bit. You know. We've got this LNG industry with a lot
of clout, big promises have been made, investments have been made, but at the same time, people
aren't really seeing price drops, right? You mentioned earlier that LNG is expensive compared
to other energy sources, even compared to renewables. But what about here in the U.S.? Since the fracking
boom and this export boom, how has that affected natural gas prices for people like John?
You know, that's a good question. And I think John Allaire in Louisiana
sums up at least how he feels about that.
I'm not seeing the benefit. They're getting all the tax breaks. We get nothing.
Remember, all of the gas that's going through this export terminal is leaving.
It's not staying in the country.
So the more that we're exporting our U.S. gas,
the more opportunity there is for our gas prices to be pushed higher.
There was a study by the U.S. Energy Information Association
that found that exporting more American gas
could lead to higher, more
unpredictable energy prices. You know, right now is the golden age for LNG. Companies are doing
gangbusters. There are dozens of proposals for more export terminals, most of them on the Gulf
Coast. But if the market turns and prices drop, we will see the familiar boom bust, a cycle that is familiar to the oil and gas industry.
And economists are already predicting a glut of LNG in the coming years as demand falls.
And that means prices would go down and profits as well.
Which could mean companies just walking away from these massive plants.
Our federal government has allowed companies to walk away from a huge plants. Our federal government has allowed
companies to walk away from a huge amount of polluting oil and gas wells before, and many
worry the same could happen again, leaving local people to live with the continued pollution.
Obviously, there are big concerns about LNG, but some would say there's still a need and demand
for fossil fuels like natural gas. Here in the U.S.,
we can't rely on just wind and solar. So yes, the U.S. and many other countries are still using
fossil fuels right now. But certain countries are spending a lot of money, including the U.S.,
to speed up a transition to renewables. So I think we need to ask, how much LNG does the U.S. need to export,
and for how long?
You know, each new export terminal that's built
could lock in at least another 20 years of natural gas use.
So if we're continuing to build out this infrastructure,
are we then delaying the opportunity
to move towards renewables?
Well, thank you, Hallie and Carlisle, for joining us to talk about your reporting from your latest
series, All Gassed Up. It was great being able to visit my old beat of energy. One more time.
Thanks so much. Thanks for having us. For more of Hallie and Carlisle's reporting,
you can listen to their series, All Gassed Up,
on the podcast C-Chain from WWNO and WRKF.
This episode was produced and edited by Justine Yan.
Our senior editor is Jenny Schmidt.
Maggie Luthar mastered this episode.
The Sunday Story team includes Andrew Mambo and Hazel Feldstein.
Our supervising senior producer is Liana Simstrom.
Irene Noguchi is our executive producer.
I'm Aisha Roscoe.
Up First is back tomorrow with all the news you need to start your week.
Until then, have a great rest of your weekend.