LNG To Meet Increased Demand But Must Overcome Local Resistance

The demand for natural gas in the United States is expected to increase 20% over the next 25 years. New LNG terminals are needed, however, LNG projects are expensive and must overcome "not in my backyard" sentiments.

Over the last three weeks, the wholesale price of natural gas has fallen over 20% due to growing storage levels caused by higher LNG imports and lower demand than previously expected for electricity generation due to cooler weather in the major gas consuming regions of the country.
LNG imports increased 54.4% in 2007 versus 2006 imports according to LNG Watch, a private publication. "We need more LNG because the nation's demand for natural gas is greater than the current domestic supply" was quoted from a Washington D.C seminar. Furthermore, the U.S. Department of Energy forecasts a 20% increase in natural gas demand over the next 25 years. Already 15% of the natural gas used today is imported, primarily from Canada. By 2030, we'll have to raise this to 21% to meet US demand. That means turning to countries with an abundance of natural gas like Trinidad and Tobago, Australia, Russia and Qatar.

Meeting Natural Gas Demand with LNG
Natural gas demand is outstripping supply because it is a clean-burning alternative to coal and other petroleum products, such as oil - especially for generating electricity. By 2030, the gap between demand and supply is projected to reach 21%.

As we exhaust domestic supplies of natural gas, the U.S. will need to rely increasingly on natural gas that is brought in from overseas. To bring it to our shores, this gas must be converted into a liquid - LNG - before it is shipped. LNG helps the nation meet its very real and pressing need for new energy supplies now.

There are only five U.S. facilities plus one in Puerto Rico currently capable of importing LNG; not nearly enough to handle demand. To meet the growing need for natural gas, more LNG import terminals need to be built. However, LNG projects are expensive and must overcome "not in my
backyard" sentiments. BHP Billiton’s plan to build an LNG terminal off the coast of the Los Angeles was recently rejected primarily due to environmental concerns.