North American LNG Outlook: Liquefied natural gas (LNG) capacity expected to surge by 2010, but LNG will not be a panacea for North American natural g

Cumulative LNG capacity is shown below in Figure 2. The chart indicates that by 2008, the total North American LNG capacity is projected to be about 33 bcfd, or about 54% of U.S. average daily natural gas demand over the period 2001-2004. By 2010, the total LNG capacity is projected to be over 51 bcfd, which is equal to about 83% of current U.S. average daily demand. Therefore, the proposed capacity represents a significant expansion of natural gas supply for the North American market, which could eventually create downward pressure on natural gas prices.