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IN BRIEF
Preliminary estimates show 40.5 billion cubic feet (Bcf) of liquefied natural gas (LNG) was imported by the United States in the first half of 1994. Import volumes for 1994 remain 5.5 percent ahead of the volume imported during January-to-June 1993. LNG imports have steadily increased from 17.5 Bcf in 1988 to more than 81 Bcf in 1993. This upward trend shows a return to LNG as a supplemental source of gas supply. There are four LNG facilities in the lower-48 states. Currently, two of the nation's LNG facilities are in operation. In addition, progress continues in Venezuela and Trinidad, two countries proposing to construct new liquefaction facilities designed to serve the U.S. market.
The United States has facilities to export LNG to Japan from the Kenai penninsula in Alaska. LNG exports from Alaska to Japan totaled approximately 27.5 Bcf for the first six months of 1994, representing a 4.5 percent increase over 1992's export volumes. Since it began production, LNG exports from Alaska have ranged from 45 Bcf to 55 Bcf annually.
BACKGROUND
Importation of LNG into the United States increased rapidly in the late 1970s, peaking at 252.6 Bcf in 1979. During the 1980s, as the wellhead price of gas decreased, LNG imports were reduced, culminating in the two-year period 1986-87 when trading with Sonatrach, the Algerian national oil and gas company and the primary supplier of LNG to the United States was suspended. Contractual differences between the importing companies and Sonatrach resulted in the suspensions of imports by Distrigas Corporation (a subsidiary of Cabot Corporation) in 1985 and Trunkline LNG Company (a Texas Eastern subsidiary) in 1983. Distrigas received a single spot-market cargo of Indonesian LNG during December 1986 at its Everett, Massachusetts facility, totaling approximately 1.7 Bcf. In 1987, no LNG was imported. Following contract renegotiations with Sonatrach, LNG imports to Distrigas' facility resumed in 1988. In December 1989, deliveries to Trunkline LNG's Lake Charles, Louisiana terminal also resumed.
1993-94 LNG IMPORTS
Table 1 shows the volume of LNG imported into the United States each year since 1977. For the first half of 1994, LNG import volumes totaled more than 40.5 Bcf. Sixty-two percent (25.2 Bcf) of the total LNG imports were delivered to the Everett, Massachusetts facility in...