LNG

Donald A. Norman , Thomas J. Duesterberg , US Manufacturers’ Alliance

As recently as the 1980s and 1990s, much of the industrial strength of the United States derived from its abundant supplies and efficient production of energy resources. LNG promises to be an important source for new gas supplies in the US, as well as throughout the world.

Given the difficulties in gaining approval to develop new natural gas production in areas
where gas reserves are thought to be significant and, given the expected time frame before a pipeline from Alaska’s North Slope is constructed, LNG is our best hope for adding measurably to US gas supplies in the short-to-medium term.

LNG imports into the US totaled 631 billion cubic feet in 2005, or 2.8 percent of total natural gas consumption.

The number of prospective projects is going to stop growing and the commercial window of opportunity for 2010-2012 will begin to close

Competition brings together large firms with equity LNG supply, large firms without equity stakes in liquefaction and independent developers

The number of prospective LNG terminal projects in North America has exceeded by a great margin the actual needs of the market.

It has become more than clear that of the sixty-odd approved, proposed and potential terminal projects tracked by the FERC, only some will see their way through to construction and eventual commissioning.

Significant investment in the continent’s import terminal network will have to continue at the current pace

Karim Nassif and William Ferara

The share of liquefied natural gas as a proportion of total natural gas demand is set to grow in Western Europe, with LNG suppliers and importers among the key beneficiaries.