The New National Liquefied Natural Gas Import Policy Requires Further Improvements

Over one-fourth of our total energy consumption is supplied by natural gas. One approach to increasing the supply of natural gas is to develop supplemental gas sources such as imported liquefied natural gas (LNG). According to government and industry statistics, imported LNG has the greatest potential to add to our Nation's supplemental gas supplies by 1985. LNG is natural gas converted to liquid form by lowering its temperature to -259 degrees F. Despite the expense of special equipment for liquefaction and oceangoing transportation and storage, the great reduction in volume can make LNG economically feasible to transport and store for subsequent regasification and use elsewhere. As part of President Carter's National Energy Plan, a new LNG import policy was established. The limitation on LNG imports imposed under the previous administration was replaced by a more flexible policy providing for a case-by-case analysis of each project.