09 May 2008 16:33 [Source: ICIS news]
By Joe Kamalick
In addition, because of sharp gains in global competition for LNG cargoes, flat or even declining North American gas production and increasing domestic demand, the
Heavily dependent on natural gas as a feedstock and energy source, the
That bind could get a lot tighter real fast.
According to the latest natural gas statistics from Paris-based Cedigaz, LNG imports to
That marked increase in LNG imports followed two years of falling LNG import trade and made
North America’s increased LNG imports played a major role, along with
Although that increase appears incremental, Cedigaz noted that “LNG trade accounted for the bulk of the growing global trade” in natural gas. LNG trade accounted for slightly more than 8,000 bcf out of total world consumption of 104,181 bcf of natgas last year.
According to the Energy Department’s forecasts, US imports of LNG will continue to grow, expanding from 500 bcf in 2006 to about 2,800 bcf by 2030.
The department said that US LNG imports would grow even faster, except that steady increases in natural gas prices will generate some demand destruction - and because the
The department’s energy data and analysis arm, the Energy Information Administration (EIA), said in its latest 2008 global energy outlook that “The future direction of the global LNG market is one of the key uncertainties” in trying to gauge future supply for US natgas demand.
“With many new international players entering LNG markets,” the EIA said, “the competition for available supplies is strong, and the amounts available to the
The administration said that it anticipates that the
ExxonMobil chief executive Rex Tillerson, however, said last year that the
That’s bad news for
LNG would of course serve as an electric power fuel and in theory might take some of the demand pressure off of domestic natgas. But as environmental concerns and perhaps inevitable mandatory federal limits on greenhouse gas emissions come into play, power demands for domestic gas as well as LNG will be huge.
That increased domestic demand combined with probably fierce global competition for LNG cargoes cannot help but drive gas prices ever higher - and make the
At some point along this path to still further dependence on unstable foreign energy sources, perhaps Congress will look anew on the vast domestic
($1 = €.65)
To discuss issues facing the chemical industry go to
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|