US govt plans meeting to discuss LNG imports

The Bush administration will invite the energy ministers of Algeria, Nigeria, Indonesia and other nations that export liquefied natural gas (LNG) to a meeting on how the United States can boost its use of the fuel, Energy Secretary Spencer Abraham was quoted by Reuters as saying Tuesday.

The meeting will include energy ministers as well as U.S. gas industry officials, the Energy Department said. A date has not yet been set.

"We must focus on smart uses of energy, along with using our natural gas resources to our own best benefit and expanding those resources to better meet our energy needs," Abraham said in a statement.

Last month, Federal Reserve Chairman Alan Greenspan told Congress that more LNG imports are needed to supply U.S. factories and power plants.

At least 14 new U.S. projects have been proposed in the past two years to boost LNG imports. However, environmental groups have expressed concern, citing the dangers of shipping highly explosive LNG and the risk of sabotage.

Separately, the Energy Information Administration said U.S. imports of LNG tripled in the first quarter of 2003.

"While expanded LNG imports could conservatively add about 140 bcf of additional natural gas supply in 2003, total LNG volumes this year are still likely to contribute less than 10 percent to total natural gas imports into the United States," the EIA said in its monthly energy supply and demand report.

An EIA analyst said U.S. imports of LNG totaled about 230 billion cubic feet (Bcf) in 2002 and will grow to about 370 Bcf this year. In 2004 -- when Dominion Resources Inc.'s Cove Point, Maryland plant is back in full operation -- U.S. shipments should jump to 440 Bcf, the analyst said.

Currently, there are three active import terminals located near Boston; Lake Charles, Louisiana; and Elba Island, Georgia.

The United States has imported LNG from Trinidad, Algeria, Australia, Nigeria, Oman, Qatar, Indonesia and the United Arab Emirates during the past two years, the Energy Department said. Several other countries are developing LNG export facilities.

U.S. natural gas production has failed to keep pace with growing demand for the fuel from new electricity generating plants and industry.

The EIA also said in its monthly report that U.S. demand for natural gas this summer would drop 3 percent from the same period one year ago due to higher prices faced by industrial plants and electric utilities.

Another factor is expected milder weather this summer, which will reduce cooling degree-days for the season by about 12 percent from last summer, the EIA said.(*)