Would-be LNG Suppliers Compete with Alaska, Northwest Canada in U.S. Gas Gold Rush; FERC LNG Authorities will Discuss Terminal Siting Challenges in Opening Workshop of 'LNG's Role in North American & Caribbean Gas Supply' Conference

Apr 12, 2001, 01:00 ET from Zeus Development Corporation

   HOUSTON, April 12 /PRNewswire/ -- Two competing pipeline projects
 originating from Prudhoe Bay, Alaska, and the Mackenzie River Delta, Northwest
 Territories, could deliver as much as eight billion cubic feet of natural gas
 per day (2.9 trillion cubic feet per year) to U.S. markets toward the end of
 this decade, representing about a 10% increase in U.S. supply.  This is more
 than twice the current delivery capacity of the United States' four existing
 LNG receiving terminals, according to Zeus Development Corporation, a Houston-
 based consultancy that focuses on LNG.  Hopeful gas suppliers in Venezuela,
 Nigeria, Northern Australia, Angola and Peru are also lining up to supply gas
 via new terminals either onshore the United States, floating offshore, or
 built on neighboring islands like the Bahamas or Cuba.  Each is anxious to
 supply gas to the yawning gulf between U.S. supply and demand, where --
 finally -- the "gas bubble" has burst and domestic producers are hard pressed
 to keep pace with growing demand from gas-fired electric power plants.
     One of the first steps for all suppliers is gaining the necessary permits
 and public support to construct their delivery infrastructure.  Pipelines in
 Alaska and Canada must cross environmentally sensitive areas, which is likely
 to raise concerns from environmentalists and Native Americans.
     LNG proponents must gain the support of local residents: a daunting task
 for any shore-based project, especially one with safety questions.  An LNG
 terminal was recently defeated twice in the last two years in Italy when
 residents blocked construction of a terminal at the proposed sites.  A third
 site offshore has received Italian government approval but has not been voted
 on by local citizens.  Sensationalists in the United States were able to gain
 newspaper headlines and television airtime in the 1970s by warning of dire
 catastrophes surrounding a potential explosion.  Even now, a Washington Post
 article on April 11 speculated that a disaster at the Cove Point, Md., LNG
 terminal could cause a disaster at a nuclear power plant several miles away --
 even though that terminal has been storing LNG for peakshaving purposes for
 over five years.
     Public and environmental support is not the only challenge: developers
 must consider such issues as adding high-Btu gas -- natural gas that contains
 higher quantities of ethane, butane and propane -- to pipeline grids.  Higher
 Btu gas can harm sensitive burner equipment for customers, causing troubles
 for local utilities.
     In a workshop entitled "Locating a Receiving and Regassification Terminal
 in North America -- A Stiff Challenge," Messrs. Robert Arvedlund, chief of
 environmental review and compliance, and Rich Foley, regulatory gas utility
 specialist, at the Federal Energy Regulatory Commission (FERC) will
 participate with Don Coers, an independent consultant and Bob Nimocks,
 president of Zeus Development Corporation, to discuss issues developers must
 consider as they contemplate building terminals that access United States gas
 markets.
     "It can be done; terminals are built in challenging areas all the time.
 The objective for LNG proponents is to keep costs low enough to supply gas to
 United States' markets at prices competitive with other distant sources like
 Canada and Alaska," said Nimocks.  "In September, BP Regional President,
 Robert Malone, stated before U.S. Senate Energy Committee that gas can be
 transported from Alaska into major U.S. markets for less than $2/MMBtu.  With
 more than 200 Tcf of possible reserves in Alaska and northwestern Canada,
 $2.00 must be the benchmark for LNG suppliers."
 
     About the Conference:
     "LNG's Role in North American & Caribbean Gas Supply" will be held at the
 Crystal City Marriott in Arlington, Virginia, from June 27-29, 2001.  The
 conference will present speakers from such LNG proponents as CMS, Texaco,
 Williams and many others.  Zeus Development Corporation will present
 conclusions of its report on the topic.  More information can be obtained
 online at www.lngexpress.com.   To register, contact Mel Ladin at Zeus
 Development Corp., 832-200-3704 or mladin@zeusdevelopment.com.
 
     About Zeus Development Corporation:
     Celebrating its tenth year of incorporation, Zeus Development Corporation
 is a privately owned research consultancy offering strategic and business
 development information through reports, monthly periodicals, databases,
 consulting services and conferences to the energy industry in the areas of
 downstream natural gas and information technology.  For more information,
 contact Ms. Whitney Casso, 832-200-3718 or wcasso@zeusdevelopment.com.
 
 

SOURCE Zeus Development Corporation
   HOUSTON, April 12 /PRNewswire/ -- Two competing pipeline projects
 originating from Prudhoe Bay, Alaska, and the Mackenzie River Delta, Northwest
 Territories, could deliver as much as eight billion cubic feet of natural gas
 per day (2.9 trillion cubic feet per year) to U.S. markets toward the end of
 this decade, representing about a 10% increase in U.S. supply.  This is more
 than twice the current delivery capacity of the United States' four existing
 LNG receiving terminals, according to Zeus Development Corporation, a Houston-
 based consultancy that focuses on LNG.  Hopeful gas suppliers in Venezuela,
 Nigeria, Northern Australia, Angola and Peru are also lining up to supply gas
 via new terminals either onshore the United States, floating offshore, or
 built on neighboring islands like the Bahamas or Cuba.  Each is anxious to
 supply gas to the yawning gulf between U.S. supply and demand, where --
 finally -- the "gas bubble" has burst and domestic producers are hard pressed
 to keep pace with growing demand from gas-fired electric power plants.
     One of the first steps for all suppliers is gaining the necessary permits
 and public support to construct their delivery infrastructure.  Pipelines in
 Alaska and Canada must cross environmentally sensitive areas, which is likely
 to raise concerns from environmentalists and Native Americans.
     LNG proponents must gain the support of local residents: a daunting task
 for any shore-based project, especially one with safety questions.  An LNG
 terminal was recently defeated twice in the last two years in Italy when
 residents blocked construction of a terminal at the proposed sites.  A third
 site offshore has received Italian government approval but has not been voted
 on by local citizens.  Sensationalists in the United States were able to gain
 newspaper headlines and television airtime in the 1970s by warning of dire
 catastrophes surrounding a potential explosion.  Even now, a Washington Post
 article on April 11 speculated that a disaster at the Cove Point, Md., LNG
 terminal could cause a disaster at a nuclear power plant several miles away --
 even though that terminal has been storing LNG for peakshaving purposes for
 over five years.
     Public and environmental support is not the only challenge: developers
 must consider such issues as adding high-Btu gas -- natural gas that contains
 higher quantities of ethane, butane and propane -- to pipeline grids.  Higher
 Btu gas can harm sensitive burner equipment for customers, causing troubles
 for local utilities.
     In a workshop entitled "Locating a Receiving and Regassification Terminal
 in North America -- A Stiff Challenge," Messrs. Robert Arvedlund, chief of
 environmental review and compliance, and Rich Foley, regulatory gas utility
 specialist, at the Federal Energy Regulatory Commission (FERC) will
 participate with Don Coers, an independent consultant and Bob Nimocks,
 president of Zeus Development Corporation, to discuss issues developers must
 consider as they contemplate building terminals that access United States gas
 markets.
     "It can be done; terminals are built in challenging areas all the time.
 The objective for LNG proponents is to keep costs low enough to supply gas to
 United States' markets at prices competitive with other distant sources like
 Canada and Alaska," said Nimocks.  "In September, BP Regional President,
 Robert Malone, stated before U.S. Senate Energy Committee that gas can be
 transported from Alaska into major U.S. markets for less than $2/MMBtu.  With
 more than 200 Tcf of possible reserves in Alaska and northwestern Canada,
 $2.00 must be the benchmark for LNG suppliers."
 
     About the Conference:
     "LNG's Role in North American & Caribbean Gas Supply" will be held at the
 Crystal City Marriott in Arlington, Virginia, from June 27-29, 2001.  The
 conference will present speakers from such LNG proponents as CMS, Texaco,
 Williams and many others.  Zeus Development Corporation will present
 conclusions of its report on the topic.  More information can be obtained
 online at www.lngexpress.com.   To register, contact Mel Ladin at Zeus
 Development Corp., 832-200-3704 or mladin@zeusdevelopment.com.
 
     About Zeus Development Corporation:
     Celebrating its tenth year of incorporation, Zeus Development Corporation
 is a privately owned research consultancy offering strategic and business
 development information through reports, monthly periodicals, databases,
 consulting services and conferences to the energy industry in the areas of
 downstream natural gas and information technology.  For more information,
 contact Ms. Whitney Casso, 832-200-3718 or wcasso@zeusdevelopment.com.
 
 SOURCE  Zeus Development Corporation