First big LNG unit seen boosting East's gas supply

Journal Article · Mon Jan 23 04:00:00 EST 1978 · Energy User News; (United States)

OSTI ID:6764699

Ruth, P

A liquefied natural gas (LNG) importation project, scheduled to begin operating at Cove Pt., Maryland in mid-March, will provide seven eastern states with one million cubic feet of gas per day for 25 years. Seven southern states will be served by a second terminal at Savannah, Georgia. Three pipelines will buy the Algerian gas. The project has enabled gas utilities to take on new customers who could not otherwise have been served. Total pipeline gas supplies will continue to decline, however, as imported gas assumes a larger share and domestic production slows. Current prices range from $1.66 to $1.83 per thousand cubic feet (mcf), with government recommendations for incremental pricing to be imposed. The El Paso Co., importer for both terminals, objects to incremental pricing being made retroactive to gas now sold at 37 cents per mcf on the grounds that business users would disappear. Algeria was chosen as a supplier because of its extensive liquefaction facilities. Fuels for the plant will be supplied by its production processes. A four-year delay in the project resulted from the need to get over 100 permits, meet specific environmental requirements (such as a $20 million tunnel rather than a trestle), and Algerian changes in contractors.

• OSTI ID: 6764699
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 3:4; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
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294003* -- Energy Planning & Policy-- Natural Gas
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LNG INDUSTRY
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