The History of LNG in the U.S.
LNG is not new to the United States. The commercial shipment of LNG began more than 50 years ago, but natural gas was stored as LNG for the first time commercially in West Virginia in 1912. Before the United States began importing LNG from overseas, liquefaction technology was used to condense natural gas so that it could be stored more easily. In fact, there are 100 LNG storage facilities – called peak-shaving facilities – throughout the United States. Here, natural gas is stored as LNG until it is needed, at which time it is converted back to gas and shipped via pipeline to market.
View the locations of the peak-shaving facilities around the country.
In 1959, the industry transported the first cargo of LNG by ship. The Methane Pioneer carried a cargo of LNG from Lake Charles, Louisiana, to Canvey Island, United Kingdom.
The United States exported natural gas for a number of years, but in the 1970s natural gas demand rose, due to a number of factors - primarily consumers' desire for independence from oil shocks. During this period, the United States began using more of its own gas. Between 1971 and 1980, four import terminals were built in the United States. The terminals are located at Lake Charles, La.; Everett, Mass.; Elba Island, Ga. and Cove Point, Md.
In the 1980s, deregulation of the federal government's price controls on natural gas resulted in an increase of natural gas supplies domestically, which caused the natural gas companies to temporarily shut down the LNG import terminals at Elba Island and Cove Point. The terminals at Lake Charles and Everett suffered from very low utilization.
The opening of an LNG export plant in Trinidad and Tobago in 1999 had a great impact on the U.S. LNG industry because it positioned LNG supplies close to the shores of the United States. New LNG supply from Trinidad and increasing natural gas demand contributed to the Elba Island and Cove Point LNG import terminals' return to operations in 2001 and 2003, respectively.
In 2005, an offshore facility, Gulf Gateway Energy Bridge, was added in the Gulf of Mexico to allow for additional imports. At this terminal, LNG is regasified on board an LNG ship connected to a pipeline, sending the natural gas to shore.
Freeport LNG, located on Quintana Island about 70 miles south of Houston, Texas commenced construction in 2005 and began operations in 2008. The Sabine Pass LNG terminal, located along the Sabine Pass River on the border between Texas and Louisiana, came on line in April 2008. Northeast Gateway Deepwater Port terminal was built in Massachusetts Bay and received its first LNG cargo in May 2008. America's ninth terminal, the Cameron LNG facility in Hackberry, La. began commercial operations in July 2009. Three more import terminals have since begun operations: Neptune LNG, offshore Gloucester, Massachusetts, Golden Pass LNG in Sabine Pass, Texas and Gulf LNG Energy LLC in Pascagoula, Mississippi.
Source: Center for Energy Economics, University of Texas at Austin