Liquefied natural gas vessels are fueled by their cargo—they’re built specifically to make use of the gas boiling off from their tanks.
But Cheniere Energy, the largest U.S. exporter of LNG, requested “alternative fuel” tax credits for that. The claim baffled shipping experts, because what Cheniere Energy is doing isn’t, in any real sense, an alternative. It also provides little climate benefit over fueling the vessels with diesel and uses the credit in a way that tax specialists say was never intended.
Yet the Internal Revenue Service approved a $370 million payout to the company, a huge windfall that Phil and Peter predicted in an exclusive investigation earlier this year. Now, a group of seven Senate Democrats have launched a probe over the controversial tax credits and financial boon to Cheniere Energy.
Phil and Peter explain the debate over the tax credits, the complicated calculations they used to estimate Cheniere’s payout, and how this case fits into their larger investigation into the hidden climate costs of exporting liquefied natural gas.
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Thank you,
Reporter, Boston
Phil McKenna is a Boston-based reporter for Inside Climate News. Before joining ICN in 2016, he was a freelance writer covering energy and the environment for publications including The New York Times, Smithsonian, Audubon and WIRED. Uprising, a story he wrote about gas leaks under U.S. cities, won the AAAS Kavli Science Journalism Award and the 2014 NASW Science in Society Award. Phil has a master’s degree in science writing from the Massachusetts Institute of Technology and was an Environmental Journalism Fellow at Middlebury College.
Data Journalist
Peter Aldhous is a science and data reporter based in San Francisco. He got his break in journalism in 1989 as a reporter for Nature in London, fresh from a Ph.D. in animal behavior. Later he worked as European correspondent for Science, news editor for New Scientist and chief news & features editor with Nature, before moving to California in 2005 to become New Scientist’s San Francisco bureau chief. From 2015 to 2022 he worked on the science desk at BuzzFeed News. Peter also teaches investigative and policy reporting, data visualization, and news features writing in the Science Communication Program at the University of California, Santa Cruz. He is a two-time winner in the Global Editors Network Data Journalism Awards. His reporting has also been honored by the Association of British Science Writers, the Association of Health Care Journalists, the Society of Environmental Journalists, and the Royal Statistical Society.