By OGJ editors
HOUSTON, Feb. 25 -- The LNG industry will capture a growing segment of the global market as demand for natural gas increases, said Canada's National Energy Board (NEB).
The current global recession should not bear too heavily on the growing demand for natural gas in the long run. Countries are scrambling to secure new sources of gas, "and LNG is definitely in the running," NEB reported in a recent energy market assessment.
"LNG provides an option to diversify and enhance the reliability of natural gas supply, but ultimately it's the market conditions, stakeholder involvement, and contractual arrangements that will set the extent of LNG imports," said Gaetan Caron, NEB chair and chief executive. "In North America alone, the supply of LNG is projected to exceed 5% (5 bcfd) of the total natural gas requirement by 2020."
LNG was once considered the most likely source to offset the continued decline in production of conventional gas, but the expected increase in LNG imports has not yet materialized, said NEB. In North America, shale gas and other unconventional gas resources have filled part of the gap.
The only Canadian facility equipped to import LNG is the Canaport regasification terminal in St. John, NB. It is expected to become operational this year and will serve markets in Atlantic Canada and New England, where LNG has historically provided up to 25% (184 bcf) of the annual gas requirement.
