As swing producer, LNG expected to set tone of energy prices in US

Nov 07, 2007 | 10:35 AM | Michael Cowden

If you want to know what price you'll be paying for energy in the future, you'd better keep your eyes on liquefied natural gas (LNG), one energy industry expert said.

The United States traditionally has had to import natural gas from Canada to meet some of its needs, but Canadian production has been leveling off in recent years despite more drilling activity. LNG will be the new "swing producer" in the United States, Brian Habacivch, vice president of consulting at Fellon-McCord & Associates Inc., Louisville, Ky., said.

A swing producer is able to step in and fill demand needs when domestic production and other sources can't, Habacivch said. "LNG is the new swing producer to the global market. If you're not paying attention to it, you're blind."

LNG will increase its market share in the United States in coming years and could represent as much as 10 percent of the U.S. natural gas market in the next two to three years, he said. "That's a big deal. That's a sea change in the supply picture in the U.S."....

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