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.

A regulatory balancing act with reverberations throughout the Gulf Coast and beyond

Jacob Dweck, Principal, LNG Solutions Group, Bill Gwozd, Vice President, Ziff Energy,
David Wochner, Attorney, Sutherland Asbill & Brennan LLP

“The purpose of this proceeding is to determine appropriate natural gas quality and interchangeability standards to accommodate the introductions of re-gasified liquefied natural gas (LNG) into the Florida Gas Transmission (FGT) pipeline system,” wrote Judge Herbert Grossman of the Federal Energy Regulatory Commission (FERC) in his 65-page Initial Decision published 11 April in the AES Ocean Express v. Florida Gas Transmission case.

The Commission’s charge, stressed the Judge, is a delicate balancing act: “facilitate increased access to LNG supplies and simultaneously ensure that the introduction of gasified LNG into the FGT system will not have detrimental effects” on electric turbines, gas distribution systems, end-user appliances and other customers.