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Gold/Mining/Energy : LNG -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (420)	4/26/2006 3:03:05 PM
From: Dennis Roth	Respond to of 919

Excelerate Energy plans to deliver additional LNG to UK in 2006 London (Platts)--26Apr2006 platts.com The US' Excelerate Energy plans to deliver new supplies of natural gas to the UK market in time for next winter through a new liquefied natural gas supply project, according to a statement from the project team. The Teesside GasPort, located near Teesside in northern England, would use Excelerate's Energy Bridge shipboard regasification technology to bring in new gas to the UK market by December 2006, assuming all planning approvals and consents are given. That could help to reassure the market about security of supply this winter. Market players have said recently that the market is very nervous about security of supply during winter 2006, after a very volatile period of trading in winter 2005, when gas prices on a day-ahead basis ranged from around 40 to 250 pence/therm. The UK also issued its first ever gas balancing alert, indicating a potential need to turn down demand to keep the system in balance, although this was the first winter the system had been in place. The project team statement said that the project could deliver at up to 3% of peak winter UK requirements. The UK uses up to about 450 million cu m/day on a peak winter day. So that might mean Excelerate Energy is planning to deliver at up to about 13.5 million cu m/day rates. Regasifying the LNG onboard ship allows the project to go ahead much faster than if a complete regasification terminal had to be built onshore. Other new LNG projects for the UK, such as two projects at Milford Haven in Wales, are not due onstream until winter 2007, which has left some uncertain about whether the UK could be short of gas in winter 2006. Winter 2006 has recently been trading at near record levels of almost 90 pence/therm, with January 2007 gas recently hitting 100p/th. "We are pleased to be able to provide a solution to the UK gas market at this critical time," said Kathleen Eisbrenner, president of Excelerate Energy. A spokesman for energy regulator OFGEM said that projects boosting security of supply for this winter were welcome and that the UK's open market had secured billions of pounds of new investment in gas supply projects. For more information, take a trial to Platts LNG Daily at lngdaily.platts.com.