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Future Supply and Emerging Resources
Liquefied Natural Gas

photo of a ship carrying LNG

Natural Gas demand is expected to increase nearly 40% from 22 Tcf to 31 Tcf between 2002 and 2025. Domestic production from conventional natural gas resources in the lower 48 states and offshore is not expected to keep pace with this projected demand growth. Increased unconventional gas production, predominantly from the Rocky Mountain region and natural gas from Alaska, may provide some supply relief. Expanded production from these and other marginal remote resources may be made more economical through the liquefaction of the gas.

Liquefied Natural Gas (LNG) provides many advantages for storage and distribution of natural gas. It is these advantages that have led many experts to agree that the supply and demand imbalance will be met largely through greater volumes of imported LNG.

Currently, LNG provides about 2.5% (~ 0.5 Tcf) of the annual U.S. natural gas needs, but this level is expected to grow to nearly 5 Tcf by 2025 representing nearly 15% of total gas consumption. With the rapid pace of worldwide export capacity expansion, LNG could meet as much as 20-25% of demand by 2025, but is higher-cost and faces major barriers to development. The ability to overcome these barriers and provide the necessary infrastructure to support increased volumes of LNG is important to America's economic growth.

The Liquefied Natural Gas Program supports the development and deployment of a steady stream of products and technologies that will progressively expand the nation's LNG system. Program areas include efforts to expand the public's understanding and acceptance of LNG, LNG safety, and R&D focused on advanced technologies for safe and efficient transportation and storage of LNG.