Report cites role of LNG to meet California’s energy needs

By CMTA Staff

Capitol Update, Dec. 14, 2007 Share this on FacebookTweet thisEmail this to a friend

The need to develop liquefied natural gas (LNG) facilities "to better serve the natural gas needs" of California "remains inescapable," according to California energy regulators.

The recently released 2007 Integrated Energy Policy Report (IEPR) underscores the absence of an adequate natural gas supply in California and the potential of LNG to shore up supplies.  "Natural gas is critical to California’s energy system, providing more than a third of the state’s total energy requirements," the report states.

The state’s reliance on imported supplies "poses an ongoing challenge in securing adequate and reliable supplies of natural gas at reasonable prices," according to the report.  With California generating only 15 percent of the natural gas it consumes, demand is expected to grow significantly within the next decade and natural gas prices are "likely to continue the upward trend."

Cited in the report is the increase in California’s wholesale natural gas price from $3.82 per thousand cubic feet in 2002 to $6.68 per million cubic feet in 2006, with California consumers spending $18.8 billion for natural gas in 2006, double what was spent in 2002.  

The report further noted that the California Energy Commission "advocates policies that allow California to secure alternative and diverse sources of natural gas to meet growing demand and energy security options, including support of liquefied natural gas facilities on the West Coast."

LNG is the solution to today’s high prices and tomorrow’s shortages.  If we do not move now to bring LNG to California, the supply-demand imbalance will continue to widen – and consumers and businesses will pay the price.

CMTA is leading an alliance of over 65 organizations, businesses and associations dedicated to securing California’s energy future.  The Californians for Clean Affordable Safe Energy (Cal-CASE) includes the California State Association of Counties, the California Restaurant Association, the Los Angeles Economic Development Corporation, the California Farm Bureau Federation, the California Chamber of Commerce, Consumers First and the California Council for Environmental and Economic Balance.

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