Natural gas

Natural gas (commonly refered to as gas in many countries, but note that this is also American and Canadian slang for gasoline) is a gaseous fossil fuel consisting primarily of methane. It is found in oil fields and natural gas fields, as well as—in smaller quantities—in coal beds.

Natural gas crisis

Many politicians and prominent figures in North America have spoken publicly about a possible natural gas crisis. This includes former Secretary of Energy Spencer Abraham, Chairman of the Federal Reserve Alan Greenspan, Ontario Minister of Energy Dwight Duncan.

Related Topics:
Natural gas crisis - Spencer Abraham - Alan Greenspan - Dwight Duncan

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The natural gas crisis is typically described by the increasing price of natural gas in the U.S. over the last few years due to the decline in indigenous supply and the increase in demand for electricity generation. The price has become so high that many industrial users, mainly in the petrochemical industry, have closed their plants causing loss of jobs. Greenspan has suggested that a solution to the natural gas crisis is the importation of LNG.

Related Topics:
Supply - Demand - Electricity - Industrial - Petrochemical

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This solution is both capital intensive and politically charged due to the NIMBY syndrome and the public perception that LNG terminals are explosive risks, especially in the wake of the 9/11 terrorist attacks in the USA. (The security arrangements during the 2004 Democratic Convention in Boston, one of only six LNG terminals in the USA were extraordinarily tight; and are maintained at a high state all year round by the US Dept. of Homeland Security.)

Related Topics:
NIMBY - 9/11 - Homeland Security

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Infrastructure issues to establish new or expanded LNG terminals are non-trivial, to say the least, especially when taken together with high capitalization needs of each subsystem. LNG terminals require a very spacious—at least 38.5m deep—harbor, as well as being sheltered from wind and waves. These "suitable" sites are thus deep in well populated seaports, which are also burdened with right of way concerns for LNG pipelines, or conversely, required to also host the LNG expansion plant facilities and end use (petrochemical) plants amidst the high population densities of major cities (with the associated fumes, multiple serious risks to safety).

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Typically, to attain "well sheltered" waters, suitable harbor sites are well up rivers or estuaries, which are unlikely to be dredged deep enough. Since these very large vessels must move slowly and ponderously in restricted waters, the transit times to and from the terminal become costly, as multiple tugs and security boats shelter and safeguard the large vessels. Operationally, LNG tankers are (for example, in Boston) effectively given sole use of the harbor, forced to arrive and depart during non-peak hours, and precluded from occupying the same harbor until the first is well departed. These factors increase operating costs and make capital investment less attractive.

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