LNG - Canadian Developments

Erin Michael O'Toole

When it is cooled to -130°C, natural gas becomes a liquid and occupies six hundred times less space than it does in its gaseous form. Liquefied Natural Gas (LNG) is rapidly becoming an important part of the North American energy supply mix, particularly as domestic supplies of natural gas near exhaustion and demand continues to increase. Currently, LNG is the source for only about 6% of the global consumption of natural gas, but this percentage is expected to rise to 11% by 2010 and to more than 20% by 2020.

LNG will be imported into North America from the Persian Gulf region, Russia, Indonesia and parts of Africa. Source countries generally have large gas reserves and relatively slight domestic demand. The gas is liquefied and transferred to ships large enough to carry LNG to supply fourteen million homes with a day's supply of natural gas. Countries receiving LNG will require large port facilities, as well as branch pipeline and re-gasification plant infrastructure to transform the LNG back into natural gas and to transmit the gas to market.

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New Nuclear?

Glenn Zacher

Premier McGuinty chose the recent Ontario Energy Association conference to offer the government's most definitive pronouncement yet on new nuclear. While the pronouncement itself is significant, perhaps more telling is the manner in which it was conveyed. The Premier did not say the government was deciding whether to build new nuclear plants. Rather, he said: "We are prepared to go ahead with economical, safe, new nuclear if that is recommended by the [Ontario Power Authority]. We will act on the best, unvarnished advice on what we need to do to ensure Ontarians always have access to safe, clean, reliable, affordable electricity."

By purporting to put the ball in the OPA's court, Premier McGuinty highlighted the issue that continues to bedevil Ontario's fledgling electricity market -the unpredictability of government involvement.

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