Liquid Natural Gas: To Positively Effect Energy Industry
A couple weeks back we posted an article that stressed the importance of the U.S. exporting their excess natural gas being produced. This is a great idea. However, there would be a need for the creation of multiple natural gas liquefaction plants to make this possible. LNG could have a great impact on the American energyindustry, Dan Dzombak explains why.
"…So why don’t U.S. companies just sell to Europe and Asia? To ship natural gas, you need to cool it to -260 degrees Fahrenheit so it becomes a liquid (hence the name, LNG) and can be safely transported. The problem is, while the U.S. has receiving terminals, we have no liquefying terminals. At a rough cost of $5/mcf to liquefy and transport to Asia, it formerly made no sense for North American producers to ship it, as they were better off selling gas on the continent…
…LNG in the U.S.
The only exporting plant in North America is ConocoPhillips‘ (NYSE: COP ) Kenai LNG plant in Alaska. The plant is in the process of being shut down as natural gas supplies in the Cook Inlet basin area have been falling. The problem was recognized years ago, and a pipeline was considered to connect the area to the main North American pipeline network, but the investment was never made, so no out-of-area natural gas can be processed there."
Find additional research here: http://turnkeyoil.com/2011/07/22/liquid-natural-gas-to-positively-effect-energy-industry/