Implications of the US-Algerian liquefied natural gas price dispute and LNG imports

Technical Report · Tue Dec 16 04:00:00 EST 1980

DOI:https://doi.org/10.2172/6485258· OSTI ID:6485258

Staats, E. B.

In early 1980 Algeria demanded a 200% increase in the price of its liquefied natural gas. When the US company involved refused to pay this price, Algeria stopped LNG deliveries. The Energy Department, which is now the primary US negotiator with Algeria, says it will not agree to the price demand. If it did Canada and Mexico, at least in the long run, would probably request equivalent prices for their gas. If their price requests were met, US natural gas import bills, at present import levels, would increase by about 79%, or $3.5 billion. However, as the prices increased, demand for imported gas would probably drop substantially. GAO does not believe importing large amounts of LNG from OPEC countries is in the national interest. LNG imports generally trade oil dependence for gas dependence. It makes little sense to increase US dependence on gas at a time when extraordinary steps are being taken to reduce dependence on oil. Current indications are, however, that not many more proposals for LNG from OPEC countries will be forthcoming in the next few years.

• Research Organization: General Accounting Office, Washington, DC (USA)
• OSTI ID: 6485258
• Report Number(s): EMD-81-34
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294003 -- Energy Planning & Policy-- Natural Gas
AFRICA
ALGERIA
DEVELOPING COUNTRIES
ENERGY SOURCES
EXPORTS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
IMPORTS
LIQUEFIED NATURAL GAS
NATURAL GAS
NORTH AMERICA
PRICES
TRADE
USA