[SoothSayer]

I saw this at Enegy Bulletin - Link

Key points:

Between now and 2010, there is a "very, very, very tight supply"

On the supply side, although there are many new projects scheduled to come onstream by 2010, almost 90% of the new production capacity has already been committed,

The LNG market looks very interesting ... I just hope that the pathetic UK & US planners get their acts together and place long term contracts NOW ... before the rest of the world has tied up all supplies for eternity ....

[dissident]

Suppliers would have to be idiots to sign long term contracts. Annual contracts are more appropriate since the gas supply is shrinking and the demand is increasing so prices are going to go up.

[SoothSayer]

The LNG world is a bit different: the liquefaction plants (called "trains") cost BILLIONS so they usually don't get built without a 15 year or longer supply contract being set up.

There is a "spot" market ... but it's currently small.

I suppose that a supplier could build a liquefaction "train" simply to cater for the "spot" market & hope for high prices ... but it could be commercially risky.

[dukey]

Something like 30% of the net energy contain in CNG is lost by compressing it. That's quite a large chunk.

By 2015, how much gas will the tar sands be using ?
lol

[SoothSayer]

Compressed NG is a minor player - Liquified NG is what will be used.

There is an energy loss ... but I feel that its 10% or below, including liquefaction, transport & gasification ... but I need to check ...

[pea-jay]

I think LNG is 85% efficient from what I remember.

North Americans would really have to be smoking something to expect that that much LNG would be ours to consume. With what are we going to pay for it? We are pretty well removed from most LNG sources, with our potential competitors closer (and cheaper) to supply. Plus there is the GTL vs LNG factor. Excess gas does not have to be liquified. It could be converted to fuel and transported anywhere (and easier) than gas. If depletion claims as much production as the geologists expect, converting gas to liquids (as inefficient as it may be) may be more profitable, leaving less to liquify

[grabby]

This is interesting.
Many have said Natural Gas from billions of farting spiders could replace our use for NG.

I wonder how this natural production could be stored? It would be quite expensive to liquify it.

But then the whole issue is naturally just gas.

[DesertBear2]

$this->bbcode_second_pass_quote('SoothSayer', '
')The LNG market looks very interesting ... I just hope that the pathetic UK & US planners get their acts together and place long term contracts NOW ... before the rest of the world has tied up all supplies for eternity ....

[pea-jay]

Let's also add: LNG terminals located in prime hurricane zones and if they are ever built, earthquake zones as well.

Lose a few of these and watch prices soar.