What's ahead for LNG/LPG

The growth of the LNG, LPG, and pipeline bulk distribution gas markets depends on the availability of capital, including an estimated $60 billion by the end of the 1980's for LNG alone to support a network of projects moving approx. 15 billion cu ft/day throughout the world, which will require long-term (averaging over 20 yr) index-linked contracts for the gas. According to the American Gas Association, import of LNG as opposed to an equivalent amount of energy from crude oil would offer the U.S. several advantages, including significant capital investment for LNG facilities in the U.S. and a larger proportion of imports moving in U.S. owned and constructed tankers. The growth of international LNG trade will also depend on the extent to which gas processing and transportation costs can be decreased by increasing LNG tanker size, on the demand for natural gas, and on U.S. gas pricing policy. Plausible trends in LNG/LPG trade through the 1980's, and the requirement for high gas prices as an incentive for gas resource development in several countries, including the U.S., are discussed.