U.S. LNG Exports: A Boon for Jobs and GDP by 2040

The U.S. liquefied natural gas (LNG) export industry is poised for significant growth, with projections indicating a substantial boost to employment and economic output by 2040. A recent study by S&P Global reveals that increased LNG exports could support nearly 500,000 jobs annually and contribute $1.3 trillion to the U.S. Gross Domestic Product (GDP) over the next two decades.

The U.S. LNG industry has already made a significant impact, supporting more than 270,000 jobs annually and generating over $400 billion in GDP since exports began in 2016. This growth is set to continue, with LNG export capacity expected to double over the next five years. The study, Major New U.S. Industry at a Crossroads: A U.S. LNG Impact Study, compares two scenarios: a Base Case, which assumes current conditions, and an Extended Halt Scenario, where no new or currently paused LNG capacity comes online.

The Base Case scenario projects that U.S. LNG export capacity will grow by 0.8 Bcf/d in Mexico, 2.5 Bcf/d in Canada, and 9.7 Bcf/d in the United States, totaling 10 new projects under construction in the three countries. This growth will be driven by Mexico's Fast Altamira LNG project, Canada's LNG Canada, and the United States' Plaquemines LNG and Corpus Christi LNG Stage III projects.

The economic benefits of increased LNG exports are substantial. The study projects that future export activity will generate more than $2.5 trillion in total revenues for U.S. businesses, $166 billion in federal and state tax revenues, and over $500 billion in labor income. Additionally, the emergence of the U.S. LNG industry has placed the United States in the pole position with global demand for gas expected to grow through 2040 alongside the rapid growth of renewables.



However, the study also highlights potential challenges and risks associated with the projected job growth in the LNG sector. One key risk is the potential for labor shortages, given the specialized skills required in the industry. To mitigate this, companies can invest in training and development programs, partner with educational institutions, and offer competitive compensation packages to attract and retain talent. Additionally, the industry should engage in proactive workforce planning to anticipate future needs and address potential skill gaps.

In conclusion, the expected growth of U.S. LNG exports presents a significant opportunity for job creation and economic growth. With the potential to support nearly 500,000 jobs annually and contribute $1.3 trillion to the U.S. GDP by 2040, the LNG industry is poised to play a crucial role in the U.S. economy. As the industry continues to grow, it is essential to address potential challenges and ensure a skilled and diverse workforce to maintain its success.