Why is LNG Important?
America’s energy strength lies in the abundance and diversity of its energy resources. Natural gas use is expected to increase 40% by 2025, while production of natural gas is predicted to grow at a slower rate. To ensure abundant, affordable, reliable natural gas for American consumers, the United States will not only have to increase development of its existing resources but also look at expanding other key components of the nation’s energy mix such as LNG. The National Petroleum Council in its 2003 study: Balancing Natural Gas Policy Fueling the Demands of a Growing Economy noted that: • Traditional North American producing areas will provide only 75% of long-term US natural gas needs through 2025. • LNG will provide almost 17% of US demand in 2025. (Other new sources of supply include Alaska and the Rocky Mountain States.) • Additional LNG capacity may be able to lower the price of natural gas by 20 to 60 cents per MMBtu (in 2002 dollars) in 2025. However, restriction of new LNG sup
