Liquefied natural gas - long-term prospects still positive



    CALGARY, Feb. 24 /CNW/ - The liquefied natural gas (LNG) industry will
capture a growing segment of the global market because the demand for natural
gas is expected to rise in years to come, the National Energy Board (NEB) said
today.
    In an Energy Market Assessment (EMA) entitled Liquefied Natural Gas, a
Canadian Perspective, the NEB provides an overview of the supply and demand of
LNG, and its potential trade prospects. The report also includes an overview
of the Canadian gas markets and energy infrastructure.
    While many sectors of the global economy have shown signs of a recession,
the recent downturn is not anticipated to bear too heavily on the demand for
more natural gas in the long run. As a result, countries around the world are
actively pursuing options to secure new sources of natural gas, and LNG is
definitely in the running.
    "LNG provides an option to diversify and enhance the reliability of
natural gas supply, but ultimately it's the market conditions, stakeholder
involvement and contractual arrangements that will set the extent of LNG
imports," said Gaétan Caron, NEB Chair and CEO. "In North America alone, the
supply of LNG is projected to exceed five per cent (5 Bcf/d) of the total
natural gas requirement by 2020."
    Once considered the most likely source to offset the ongoing decline in
the production of conventional natural gas, the expected increase in LNG
imports has not materialized as anticipated in areas such as North America
where shale gas and other unconventional natural gas resources have filled
part of the gap.
    The only Canadian facility currently equipped to import LNG is the
Canaport terminal located in Saint John, New Brunswick. This regasification
terminal, which is expected to become operational in early 2009, will serve
markets in Atlantic Canada and the significant New England market where LNG
has historically provided up to 25 per cent (184 Bcf) of the annual natural
gas requirement.

    The NEB is an independent federal agency that regulates several parts of
Canada's energy industry. Its purpose is to promote safety and security,
environmental protection, and efficient energy infrastructure and markets in
the Canadian public interest, within the mandate set by Parliament in the
regulation of pipelines, energy development and trade. As part of its mandate
the NEB monitors the supply of all energy commodities in Canada and publishes
reports on energy, called Energy Market Assessments.

    This news release, a fact sheet and the Liquefied Natural Gas, a Canadian
Perspective EMA are available on the Board's Internet site at
www.neb-one.gc.ca under What's New!





For further information:

For further information: Carole Léger-Kubeczek, Communications Officer,
Email: carole.leger-kubeczek@neb-one.gc.ca, Telephone: (403) 299-2717, TTY
(teletype): 1-800-632-1663; For a copy of Liquefied Natural Gas, a Canadian
Perspective: National Energy Board Library, Telephone: (403) 299-3561, Email:
library@neb-one.gc.ca


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