LNG

China has made progress on nationwide natural gas pricing reform that affects LNG imports, with the average price of baseline demand now about US$10.90 per million British thermal units while incremental volumes cost around US$13.00 per MMBtu, according to a report published by a leading consultancy.

Native North American First Nation tribes in Canada are receiving federal funding to participate in permitting processes for LNG projects run by international energy companies, though two tribes have set up their own corporations for LNG export ventures and more could follow in the future.

Ferus Natural Gas Fuels Inc. has opened its first merchant LNG facility in Canada at Elmworth in the province of Alberta to supply LNG as a replacement for diesel in high-horsepower machinery such as that used in the energy exploration and production industry.

Origin Energy and its US and Chinese partners in the Australia Pacific LNG project being constructed near the port of Gladstone are defending a legal action in the Queensland Supreme Court by the Tri-Star energy group challenging the rights of the APLNG venture to certain feed-gas assets.