Regional LNG: Rising U.S. gas demand boosts LNG prospects
Wednesday, September 17 2003 - 02:18 AM WIB
Current U.S. natural gas demand is about 23 trillion cubic feet (tcf) annually and is projected to be 35 tcf by 2020, according to the U.S. Energy Information Administration.
The U.S. produces 87 percent of the gas it now consumes, but will need more imports in the future, they said.
"Obviously, LNG is part of the solution," said Elizabeth Spomer, chief executive of BG LNG Services LLC, a subsidiary of natural gas major BG Group Plc, at a Houston energy conference. "LNG can compete in this market at a price of about $2.50 per million British thermal units (btu)."
Natural gas now sells at $4.50 per thousand cubic feet, which is roughly equivalent to one million btu.
EIA estimates U.S. LNG imports will increase over the next 20 years to 2.1 trillion cubic feet annually, up from 240 billion cubic feet in 2001. Most LNG currently comes from Africa and Latin America.
Several companies have announced multiple projects to build terminals along U.S. coastlines to re-convert the liquid into vapor natural gas, which would then be transported by pipeline, Spomer added. (*)
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The following data from a recent Energy Information Administration report detail some of the proposed LNG projects for the U.S. market, and the existing four LNG terminals. (All data are expressed in billion cubic feet (Bcf))
EXISTING U.S. LNG TERMINALS
* Cove Point, Maryland
* Elba Island, Georgia
* Lake Charles, Louisiana
* Everett, Massachusetts
PROPOSED LNG TERMINALS IN / NEAR U.S.
* Cameron Parish, Louisiana; FERC on Wednesday approved Sempra Energy's plan to build a $700 million LNG terminal with daily capacity of 1.5 Bcf. The facility should go into operation in 2007.
* Ocean Cay, Bahamas; Project planned by AES with annual capacity of 200 Bcf.
* Freeport, Texas; $400 million project planned by Cheniere with annual capacity of 365 Bcf.
* Corpus Christi, Texas; Project planned by Cheniere with application to be submitted in January 2004 to the Federal Energy Regulatory Commission.
* Sabine Pass, Louisiana; Project planned by Cheniere with application to be submitted in January 2004 to the Federal Energy Regulatory Commission.
* Brownsville, Texas; Cheniere holds lease option on potential site.
* Port Pelican, Gulf of Mexico; Project planned by ChevronTexaco for annual storage of 290 Bcf.
* Tampa, Florida; BP considering possible project with storage of annual 200 Bcf.
* Baja California; ChevronTexaco considering possible project with annual storage of 200 Bcf.
* Freeport, Bahamas; Project planned by El Paso with annual storage of 200 Bcf to serve Florida market.
* Rosarito, Mexico; ConocoPhillips considering project with annual storage of 250 Bcf to serve California market.
* Tijuana, Mexico; Project planned by Marathon/Pertamina with annual storage of 365 Bcf to serve California market.
* Ensenada, Mexico; Project planned by Sempra/CMS with annual storage of 365 Bcf to serve California market.
* Long Beach, California; $400 million project planned by Mitsubishi Corp for annual storage of 685 Bcf.
Built in 1978, mothballed in 1980 and reopened in 1995 for storage only. The terminal was recently sold by Williams Cos to Dominion Resources and is being reactivated. With daily storage capacity of 5.0 Bcf, it is expanding storage to 7.8 Bcf.
Built in 1978, mothballed in 1980 and reopened in late 2001. The terminal, owned by El Paso Corp, has daily storage capacity of 4.0 Bcf. Plans to spend $145 million to add 3.3 Bcf in extra capacity by September 2005.
Built in 1982 and closed soon afterward, then reopened in 1989. The terminal, owned by Southern Union Panhandle, has 6.3 Bcf in daily storage capacity. Plans to add 3.0 Bcf in extra storage.
Built in 1971 and owned by Distrigas, a unit of Belgium's Tractebel. The plant has daily storage capacity of 3.5 Bcf.