DOE's OFE, NARUC launch LNG public awareness campaign

Sept. 22, 2003
The US Department of Energy's Office of Fossil Energy (OFE) and the National Association of Regulatory Utility Commissioners (NARUC) recently launched a new LNG education campaign to dispel what energy regulators say are popular misconceptions about the fuel.

The US Department of Energy's Office of Fossil Energy (OFE) and the National Association of Regulatory Utility Commissioners (NARUC) recently launched a new LNG education campaign to dispel what energy regulators say are popular misconceptions about the fuel.

DOE said the new OFE-funded project "aims to enhance communication between critical energy stakeholders to ensure the responsible development and deployment of LNG."

NARUC is planning a series of regional and national hearings that will ultimately result in a report to be presented at an LNG forum sponsored by the National Petroleum Council.

The idea for a localized education campaign came out of a June NPC emergency natural gas meeting in Washington, DC. At that time Sec. of Energy Spencer Abraham warned industry and state officials that low gas storage levels could lead to huge price increases for consumers this winter. Since then the short-term outlook has improved somewhat with storage levels back near historical figures. Nevertheless, longer-term concerns remain.

US officials expect US gas consumption to increase by more than 50% by 2025, and LNG is expected to play an increasing role in meeting increasing demand.

Supporting materials

NARUC plans to offer state energy and environmental officials various supporting materials on LNG, including a white paper, primer, and draft communications plan to help explain LNG's benefits to local stakeholder groups.

"Both the regulatory community and industry are important to the accelerated development of LNG. To make more LNG available, energy companies must invest in the "LNG value chain"—the terminals, ships, storage tanks, trucks, and pipelines that carry and store LNG. Without the support of the regulatory community, it will be difficult to encourage private sector investments in new or mothballed facilities," DOE said in a Sept. 10 news release.

"State legislators and the public are equally important. Concerns about safety, security, and environmental protection are shared by all. To support LNG as a reliable and affordable resource, legislators must develop public policies that ensure safe operation of LNG facilities, protect them from terrorist activities or accidents, and preserve the environment," DOE said.

Current situation

According to DOE, there are currently 17 LNG export terminals, 40 LNG import terminals, and 136 LNG tankers worldwide. In the past 2 years, the US has imported LNG from Trinidad and Tobago, Algeria, Australia, Nigeria, Oman, Qatar, Indonesia, and the UAE. Other countries with significant quantities of gas are developing LNG export capability, DOE said.

The US has the largest number of LNG facilities in the world—113 facilities are active, including four import terminals. But those numbers are expected to increase in the next 5 years, thanks to market dynamics and retooled regulations designed to streamline permitting.

The US Federal Energy Regulatory Commission recently approved for construction the first new LNG terminal to be built in the US in 25 years. Sempra Energy LNG Corp.'s Cameron LNG facility near Hackberry, La., will include a terminal with three storage tanks that will hold the equivalent of 3.5 bcfe, and a 35.4 mile pipeline that will extend from the terminal to an interconnection with facilities operated by Transcontinental Gas Pipeline Corp.