LNG and the Midwest

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Introduction We need first to examine the importance of natural gas as a source of energy both in the United States and the Midwest. Total United States consumption of natural gas in 1969 rose to 20.9 trillion cubic feet. Since 1964, when total consumption was 15.5 trillion cubic feet, consumption has increased nearly 35% on a volumetric basis. These figures are for total gas distributed through utility mains and direct industrial sales but since natural gas now accounts for 99% of the total gas used by the ultimate customer in the U.S., they represent natural gas consumption accurately. The rapid growth of natural gas consumption and its place in the energy market compared to other forms of energy is shown on Figure 1. In 1968, natural gas provided just over 31% of the total energy consumed in the United States. The present shortage of natural gas and the increasing demand for energy points up the need for additional supplies of points up the need for additional supplies of all sources of energy gas, LNG, coal, nuclear power, and fuel oil. We propose to outline how power, and fuel oil. We propose to outline how LNG will serve as an important supplemental supply of energy to help meet spiraling U.S. demands. The growth of population is an important factor in the present energy picture; however, the consumption of natural gas-has increased almost six times faster on a per capita basis. The northeastern megalopolis (from Washington, D.C. to Boston, Mass.) is sometimes thought to have the greatest demands for U.S. natural gas. Consumption of natural gas in 1969 in the six-state area of New Jersey, New York, Pennsylvania, Delaware, Massachusetts, and Maryland Pennsylvania, Delaware, Massachusetts, and Maryland plus the District of Columbia amounted to 2.1 plus the District of Columbia amounted to 2.1 trillion cubic feet. But the 12-state Midwest area of South Dakota, Nebraska, Iowa, Missouri, Illinois, Michigan, Indiana, Kentucky, Tennessee, Ohio, Minnesota, and Wisconsin in 1969 consumed over 5.5 trillion cubic feet or 26% of the total U.S. consumption. This is equivalent to about one billion barrels of oil. Since 1964, natural gas consumption in the Midwest market has grown 41% compared to the U.S. average of 35%. With the shortage of domestic natural gas it is obvious that the Midwest will require major supplies of energy from other sources. LNG will provide some of this energy through the importation of gas from remote regions of prolific gas production to the areas of heavy prolific gas production to the areas of heavy consumption. THE STATUS OF LNG TODAY The use of liquefied natural gas (LNG) as an energy source is of great commercial interest today. The problem of equating supply and demand of natural gas has increased during recent years because of the increasing differentials between winter and summer requirements that have resulted from increased gas consumption for space heating.