H.R. 2769: American Gas for Allies Act

This bill, titled the American Gas for Allies Act, aims to expedite the processes for exporting natural gas from the United States to member countries of the North Atlantic Treaty Organization (NATO) and Ukraine. The key provisions of the bill are as follows:

Key Provisions

• Streamlined Export Applications: For a period of three years, applications for the export of natural gas to NATO member countries and Ukraine will be treated as consistent with the public interest. This means that such applications will be approved without modification or delay.
• Countries Involved: The legislation specifically mentions NATO member countries and Ukraine as eligible for these expedited exports.
• Applicable Timeframe: The expedited processing of applications applies to those currently pending at the time the bill is enacted, as well as to any new applications submitted during the three years following the enactment.

Reasons for the Bill

The bill outlines several findings that justify its measures:

• The United States is a longstanding member of NATO, which has been crucial for the security of both the U.S. and its European allies.
• The security threat posed by Russia's invasion of Ukraine has underscored the importance of a strong partnership between the U.S. and NATO allies, including Ukraine.
• Supplying liquefied natural gas (LNG) to NATO members and Ukraine from the U.S. contributes to their energy security, preventing reliance on energy resources from foreign adversaries.
• Since 2016, the U.S. LNG industry has significantly contributed to the national economy and job creation.
• U.S. LNG has lower greenhouse gas emissions compared to coal and certain foreign gas options, making it a more environmentally friendly energy choice.

Conclusion of Findings

Ultimately, the bill reflects a strategic move to bolster energy security for U.S. allies, particularly in the context of ongoing geopolitical tensions, while also highlighting the economic benefits of the natural gas industry within the United States.

Relevant Companies

• CHK - Chesapeake Energy Corporation: As a major producer of natural gas, this company could benefit from increased demand as U.S. LNG exports rise.
• CVX - Chevron Corporation: This multinational company is involved in LNG production and could see an uptick in exports related to the provisions of this bill.
• XOM - Exxon Mobil Corporation: A leading player in the oil and gas industry with significant LNG operations that could directly benefit from increased export opportunities.