LNG not a short-term supply fix, warns US research firm

Liquified natural gas (LNG) will have a minimal impact on a significant US gas storage shortfall in the winter of 2003/2004, despite its long-term promise, says Energy Security Analysis Inc (Esai), a Boston-based research firm.

Esai predicts a storage shortfall of 750 billion cubic feet for November, givennormal summer demand. That would leave US storage capacity only 76% full. Evenfull use of the four LNG terminals in the US would only boost storage to 82%,says the company.

The US faces its worst natural gas supply shortage in more than 25 years, asincreased demand from the power generation sector has outstripped production.Storage levels have fallen to their lowest level since 1976, and are 30% belowthe average

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