Manufacturers group wants more LNG terminals built

Manufacturers group wants more LNG terminals built    An Arlington, Va.-based manufacturers trade group said the United States must build more liquefied natural gas terminals to “rebuild global competitiveness of the sector.”
   The Manufacturers Alliance/MAPI released a detailed report Wednesday citing the industrial need for increased LNG imports.
   “It is imperative that we take all available measures, including acceleration of domestic production, conservation, and expansion of LNG imports, to offset the competitive disadvantage faced by U.S. manufacturers because of record high natural gas prices,” said Thomas J. Duesterberg, president and chief executive officer of the Manufacturers Alliance/MAPI, in a statement.
   The report, “U.S. Manufacturing and the Evolving Global LNG Market: Prospects for Lower Energy Costs,” points out that the price of U.S. natural gas remains about three times higher than its average level in the 1980s, hurting the U.S. manufacturing sector.
   The alliance said the United States should build LNG terminals if it’s to benefit from the expanding international LNG trade. The country imported 631 billion cubic feet of LNG in 2005. The alliance report estimates that U.S. LNG imports could total as much as 4.9 trillion cubic feet by 2010 if the three terminals under construction and the nine that have been approved by the Federal Energy Regulatory Commission are completed. The long-term effect of the increased LNG supply could reduce the price of gas by 21 percent, the alliance said.
   “If the U.S. fails to fully participate in the developing LNG trade, domestic natural gas prices will remain above prices elsewhere and U.S. manufacturers who rely on natural gas will remain at a competitive disadvantage,” warned Donald A. Norman, economist and author of the alliance’s report.