Liquefied Natural Gas is the Global Transformation
Liquefied natural gas (LNG) is fast evolving in international markets. Natural gas, an abundant source of clean energy, has long been considered as an energy option. Oklahoma, from Tulsa to Elk City, will greatly benefit from the LNG international markets. In particular, Russia has dominated the natural gas market, especially in Eastern Europe, for quite some time. Recently, the U.S. has made inroads into the LNG market through its efforts with Poland.
According to Tom DiChristopher, “Poland took another step toward weaning itself off Russian energy supplies in June by signing a 20-year agreement with San Diego-based Sempra Energy to import U.S. liquefied natural gas. The signing marks the third long-term contract the state-controlled Polish Oil and Gas Company, or PGNiG, has inked with an American LNG company this year. In the coming years, Warsaw plans to replace Russian gas with pipeline supplies from Norway and shipments of LNG, or gas super-chilled to liquid form for transport by sea.”
In my book, America Needs America’s Energy: Creating Together the People’s Energy Plan, I emphasize the importance of LNG. In 2012 at the International Energy Policy Conference, which I chaired, Bob Tippee noted: “Always a ravenous importer of oil, the United States was supposed to import a growing amount of methane in the form of LNG. Then, surprise! The country became able to produce all the natural gas it needs, and more. The gas occurs in low-permeability rock strata, especially shales, that hadn’t produced much before. Until very recently, no one knew how to make it happen. Now companies are drilling horizontal wells and, in effect, manufacturing the permeability that nature didn’t provide with hydraulic fracturing. Suddenly, huge new volumes of natural gas have appeared in pipelines and, more importantly, on the development horizon.”
As I have stated, “Natural gas, especially Liquefied Natural Gas (LNG), appears to be one of the key areas of dialogue. Natural gas is leading the transition from being a net importer to a net exporter primarily due to the LNG efforts in the Gulf Coast region. The Sabine Pass operation, operated by Cheniere Energy, has shipped over 175 cargoes to some 25 nations. According to an article in the American Oil and Gas Reporter, “Since U.S. LNG export terminals are contracted with LNG buyers under long term (typically 20-year) purchased agreements, LNG exports represent a stable and growing new demand for domestic natural gas supplies.” And the article goes on to state, “In aggregate, the first wave of U.S. LNG export terminals coming on line during the next couple of years is expected to have a total operational capacity of 9.5 Bcf/d.”
Among other companies involved in U.S. terminal LNG planning are Dominion Energy, Pacific Summit Energy, Kinder Morgan, GAIL Global, Sempra Energy and Freeport LNG.
“Future generations are depending on us to keep the American dream alive. Energy is the future of America, and America, and the world, needs America’s energy and know-how!”
Mark A. Stansberry is Chairman of the GTD Group, an award winning author and Energy Advocate.
