Focus On US-Bound LNG.

Some of OPEC's biggest members on Dec. 17 shifted their attention from crude oil to LNG exports at a US government meeting in Washington which focused on US imports of the refrigerated methane. Attending the two-day conference were oil and energy ministers from Saudi Arabia, Indonesia, Venezuela, Algeria and Qatar, as well as high-ranking representatives from Russia, Norway, Trinidad, Australia, Egypt, Oman and other non-OPEC exporters.

All these states are considering or have already launched large LNG export ventures bound for the US market, with the ventures involving the biggest US oil companies as well as European and Japanese majors. US Energy Secretary Abraham told the conference: "LNG clearly is going to be a large factor in the world's future energy equation". (LNG is methane cooled to minus-259 degrees Fahrenheit, shrinking the gas into liquid form for transportation aboard double-hulled tankers. The LNG is then regasified and fed into existing natural gas pipelines for distribution).

By then, the Energy Department's Energy Information Administration (EIA) had forecast US imports of LNG would grow to 4.8 TCF in 2025, up from 540 BCF in 2003. Ageing gas fields and rising demand to fuel electricity generating plants means that, by 2025, natural gas produced in North America will meet only 75% of US demand. ExxonMobil, Shell, BP, ChevronTexaco, Total and ConocoPhillips are among the many companies racing to develop plans to build new LNG receiving terminals in California, Texas, Alabama, Florida, Mexico, Nova Scotia and other locations.

New LNG terminals to unload and regasify the methane cost several hundred million dollars. Some US environmental groups have expressed concern about LNG terminals and tankers being an easy target for an attack. Currently there are four LNG terminals in the US. More than 30 new ones have been proposed by companies (see Part 3 in Review No. 25).