Filling the Supply/Demand Gap
DIVERSIFYING OUR ENERGY CHOICES
As America moves toward a cleaner energy future, clean burning natural gas will likely emerge as a leading choice to heat our homes, and fuel our power plants and industries. Demand for natural gas is likely to increase because of its clean-burning characteristics, especially for producing electricity.
According to the U.S. Department of Energy (DOE), natural gas makes up 25% of total energy consumption in the United States.
Currently, LNG makes up only 2% of the natural gas supply. Therefore, LNG alone cannot meet growing demand, but it has an important role to play in the mix of energy choices necessary to help our nation meet its need for clean energy when and where it is needed.
LNG IMPORT/EXPORT TERMINALS
The U.S. must have a well-developed LNG infrastructure to ensure American businesses are not disadvantaged when competing for LNG supplies, which are in high demand throughout the world market.
Today, there are 12 U.S. facilities (and one facility in Puerto Rico) capable of importing LNG and one approved for exporting LNG to non-free trade countries.
Learn more about the locations of existing and proposed LNG import/export terminals.
Read more about LNG and America's Future.
LNG'S ROLE IN DIVERSIFYING THE U.S. ENERGY PORTFOLIO
There is a call for the United States to gain more control over its energy future. One of the most effective and achievable means of doing so is diversifying the energy sources from which our nation draws. Bringing more LNG into our supply mix reduces America's reliance on any one region for supplies.
The world's supplies of natural gas are widely distributed across the globe. Many countries with large gas supplies do not need all that they are capable of producing. This provides for a diversity of gas resources that minimizes potential dependence on a single region and helps avoid or minimize price spikes. By relying less on any one region for supplies, the United States will gain more control over its energy future.
Trinidad and Tobago provided 31.1% of U.S. LNG imports in 2011 (Figure 1).
Figure 1: Energy Information Administration. Based on data from the Office of Fossil Energy. U.S. Department of Energy.
Natural gas serves most of the nation's households and many industries. Natural gas is used in about six of every 10 U.S. households – around 65 million homes. It is an indispensable feedstock for fertilizer and chemical manufacturers. And, it is a growing source of fuel for electricity generation. In the last several years, more than 90% of the new power plants built in the United States use natural gas to generate electricity.