The U.S. will have almost four times more liquefied natural gas import capacity than it can use by 2012 because of a shortfall in fuel supply, according to a report from consultant PFC Energy.
Supplies of liquefied gas, or LNG, will fall short of the capacity of U.S. terminals to return the fuel to gaseous state by 4.35 trillion cubic feet a year by 2012, Washington-based PFC Energy said in the report issued Tuesday. The U.S. Energy Information Administration estimated this month that LNG imports will reach 1.62 trillion cubic feet in 2012.
"This is a very large overbuild," said Terrell Benke, manager of the upstream oil and gas group at PFC Energy and one of the authors of the report. "You've had re-gasification terminals that were built without dedicated supply behind them."
Imports of LNG to the U.S. have declined in recent months as shippers responded to increased demand and higher prices in Asia and Europe.
LNG won't show up on the US shores, unless there is a "HUGE" increase in the price of natural gas.