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LNG: North American Project Almanac 2005
Utilis Energy, LLC
LNG was once considered too expensive for the American market, but with natural gas prices expected to remain at the $5 per thousand cubic feet (Mcf) level and with LNG production and delivery costs dipping below $3.50 per Mcf, the fuel is an increasingly viable and profitable source of energy for North America.
However, since import capacity at the four operating US terminals is insufficient to meet growing demand, additional regasification facilities are required to bring new supplies to market. The four terminals currently in operation in the US are:
- Everett, Massachusetts;
- Cove Point, Maryland;
- Elba Island Georgia;
- Lake Charles, Louisiana.
The industry has expressed concern that companies active in the market are running the risk of overbuilding import terminal capacity - creating a potential oversupply in the market that will depress gas prices and impede operating profitability. This concern is compounded by the fact that the combined production capacity of all North American LNG projects presently 'on the drawing board' exceeds 35 billion cubic feet of gas per day (Bcf per day). In 2003 the entire global LNG business averaged only 18 Bcf per day. It is therefore inevitable that many projects will 'fizzle out' while others will be rejected during the permitting process.
Many see the expansion of US LNG imports as a means to lessen US dependence on foreign oil and welcome expansion plans, while other groups oppose any new LNG import terminal developments, citing potential threats by terror groups and environmental disruption.
All of these forces contribute to the complexities associated with the hundreds of millions of dollars in investment required to construct new LNG import and regasification facilities.
LNG (Liquefied Natural Gas) is an increasingly important source of energy for North America. Favorable economics, a changing regulatory climate and strong natural gas prices make the importation of LNG a viable and profitable business opportunity. However, since US import terminal capacity is insufficient to meet growing demand, additional infrastructure is required to bring greater supplies to market.
This study provides:
- Project specific descriptions and operating capacities
- Ownership and contact information
- Potential sources of supply
- Permitting status
- Estimated start up dates
LNG: North American Project Almanac 2005 is a comprehensive guide to proposed projects, from green field proposals to operational expansions of existing terminals. This study contains the most up-to-date information available and is an invaluable tool for:
- Strategic planners
- Project and infrastructure developers
- Downstream gas analysts
- Financiers who are actively involved with or have exposure to US natural gas markets
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