Exploration and Production Technologies
Liquefied Natural Gas (LNG) Partnership

DE-AF26-06NT05482

Goal
To promote responsible development and deployment of LNG infrastructure in the United States. Partnership activities will assist in the education of critical energy decision-makers on barriers and opportunities related to the increased development of LNG resources.

Objective 
U.S. consumption of natural gas is expected to increase by more than 50 percent by 2025. With the nation facing tight gas supplies and corresponding high prices for natural gas shortages in the short term, and increasing demand for gas in the longer term, liquefied natural gas (LNG) has been touted as a possible/necessary solution.

The LNG industry in the United States currently provides a small (about 2%) of the domestic natural gas market, but imports are expected to grow to nearly 15% of U.S. consumption by 2025 filling a growing gap between domestic gas production and consumption. In order for this growth to be realized a large new expansion in LNG receiving and storage facilities is required. The regulatory community, industry and the public are all critically 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 transport and store LNG. Without the support of the regulatory community, it will be difficult to encourage private sector investments in new or facilities. 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 and secure operation of LNG facilities, and preserve the environment.

The focus of this project is to enhance communication and awareness between critical energy stakeholders to ensure the responsible development and deployment of LNG. This effort will begin with a series of regional and national dialogues that will lead to the production of a comprehensive LNG white paper for state public utility commissions and a draft LNG communication strategy for a "case study" state which could be adapted to other states.

Performer
National Association of Regulatory Utility Commissioners (NARUC)

Accomplishments

  • Completed three regional dialogs and facility tours at Cove Point , Elba Island, and Lake Charles
  • On March 21, 2007 the DOE/NARUC LNG Partnership brought together NARUC members and LNG experts to engage in a dialogue and observe a live fire experiment at Sandia National Laboratories to better understand the issues associated with LNG technologies. This event was a great opportunity for participants to learn more about LNG, the safety issues surrounding the energy resource, and the policy work that has been done to address these questions.

Current Status (December 2008)
This project is complete and a Final Project Status Report is provided below under "Additional Information".

Start Date: September 10, 2003
End Date: Aprul 30, 2008

Anticipated DOE Cost: $120,000
Performer Cost: $0

Contact Information:
NETL – Robert Vagnetti (robert.vagnetti@netl.doe.gov or 304-285-1334 )
NARUC – Miles Keogh (mkeogh@naruc.org or 202-898 2217)

Additional Information:
Final Project Report [PDF-41KB] - June, 2008

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