LNG - Issues
The demand for natural gas in the US has been exceeding supply for most of the decade. In fact, natural gas usage is increasing while US production is falling. LNG is considered a key supply source to offset near term demand for natural gas. LNG is economically viable at today's market price, based on supply contracts and on netback pricing.
Unfortunately, it takes a long time to invest in and establish a LNG supply chain. This includes building terminals to liquefy the gas, building ships to transport LNG to the US and building LNG terminals and pipelines to gasify LNG and distribute to U.S. markets.
LNG is also predominantly imported from Trinidad and Tobago and from Algeria. Indonesia, Malaysia, and Qatar are also the leading exporters of LNG. Russia and Iran have the greatest potential. Most of the natural gas produced abroad is a byproduct of oil production in those countries. BG, BP, Tractebel and ExxonMobil are the principal suppliers to US markets.
In its liquid state, LNG takes up 1/600 of the volume of gaseous state. Thus it is ideal for transport. However imported LNG generally has a higher Btu heat content than domestic gas and may cause problems for gas appliances in the US (see Gas Quality)
Issues arise about LNG over the following topics:
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