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The Administration is committed to encouraging the growth of natural gas in the mix of fossil fuels on a global basis. Natural gas is globally
abundant, but does not enjoy the same market breadth as petroleum liquids or coal. Liquified Natural Gas markets have developed on a limited
regional basis and appear poised to expand rapidly as demand for environmentally attractive energy sources is sought to fuel the expanding energy
demands in developed and emerging economies. The Department of Energy is taking the Administration's lead to support and encourage the development
of this exciting expanding market.
The LNG industry in the United States has until recently occupied a small niche in the domestic natural gas market, but LNG imports are expected
to help fill a growing gap between domestic gas production and consumption. In the last two years, the U.S. has imported LNG from Trinidad,
Algeria, Australia, Nigeria, Oman, Qatar, Indonesia, and the United Arab Emirates, and a number of other countries with significant quantities of
natural gas resources presently have or are in the process of developing LNG export supply capability.
LNG relies on ship-borne delivery that makes it an
attractive natural gas source for coastal markets. In the United States those markets are generally in highly populated areas at the extreme
end of the pipeline system. LNG imports are and will continue to be particularly important in providing gas to meet the needs of supply-constrained
U.S. coastal markets as well as supply to augment domestic supplies in the nation's pipeline system. LNG can account for as much as 40% of supply in
the New England area during peak winter demand periods.
Currently there are four active import terminals in the continental United States. They are located in Everett, MA (Boston Harbor), Lake Charles, LA,
Elba Island, GA and Cove Point, MD, which began receiving ships in the summer of 2003.
Secretary Abraham, in March 2002 asked the National Petroleum Council (NPC) to conduct a comprehensive
and wide-ranging study of natural gas in the United States during the 21st century as a follow-up to the 1999 study (see the NPC website at
www.NPC.org for a copy of this report). On May 16, 2003 the NPC provided a Progress
Report on the NPC Natural Gas Study requested by the Secretary and is expected to release the final later this year.
Further Resources:
EIA Report: The Global Liquefied Natural lGAs Market: Status and Outlook (December 2003)
Keynote Address by Secretary of Energy Spencer Abraham at the LNG Ministerial Summit
Additional presentations from the LNG Summit:
http://www.usea.org/lngsummitpresentations.htm
Additional information on the LNG Ministerial Summit (USEA website)
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