Gas Shortfall Highlights LNG Export Debate

New England is facing a potential shortage of liquid natural gas (LNG) after terrorist attacks on a Yemenese pipeline cancelled shipments to a Massachusetts terminal. Domestic gas could make up the shortfall, but a gas pipeline or export terminals would be needed. Currently, area power and gas companies are working to establish financing for construction of a pipeline expansion, and proposed LNG export facilities are being held up by DOE. New England’s electricity market is a complicating factor in pipeline negotiations. New pipeline capacity would require long-term contracts between suppliers and utilities, and inchoate gas and electric power market rules make it… [more]