To the exporters the spoils

US LNG exports set for boost from Ukraine

US gas exports are set for a boost from the crisis in Ukraine. Though liquefying America's plentiful gas for export makes business and economic sense, approvals are enmeshed in politics. Gas from the United States wouldn't reach Europe for years but the energy implications of Kiev's standoff with Moscow provide cover for lawmakers to give projects the nod.

The energy committees of the US Senate and House both mulled measures to accelerate the approval of liquefied natural gas export facilities on Tuesday. Louisiana Democratic Senator and committee Chair Mary Landrieu argued it was the best way of turning the screws on Russian President Vladimir Putin.

There's some truth to that as Russia supplies Europe with almost a third of its gas - some 19 billion cubic feet a day. Reducing that would be a blow to Russia's economy and its political clout.

The United States has the potential to replace much of the supply, according to consultancy RBN Energy. So far, regulators have already approved around nine export capacity and another 24 billion cubic feet is awaiting the go-ahead. And a lot of America's reserves are on the eastern seaboard.

The problem is, even if lawmakers do speed up the process of approving exports, it wouldn't make a difference until at least 2017. It can take four years to get liquid natural gas (LNG) terminals up and running stateside. And eastern European states, which are the most vulnerable to Putin's bullying, lack sufficient facilities to import and distribute LNG.

Gas companies aren't so focused on the potential geopolitical benefits of allowing more sales abroad. They have their eye on the bottom line. Currently natural gas sells for around twice the US price of $4.40 per million British thermal units in Europe and three times the US price in Asia.

All in, that means Europe is likely to have a long wait for any US gas relief. If the Ukraine crisis becomes the excuse to change 8US export policy in their favour, though, the exporters are not going to grumble.