SOURCE: Zeus Development Corporation

October 26, 2006 13:32 ET

As Residential, Commercial Gas Consumption Grows, So Does Need for LNG Peakshavers; Atlanta Conference to Explore Issues, Challenges

HOUSTON, TX -- (MARKET WIRE) -- October 26, 2006 --With high-energy prices, residential and commercial markets for natural gas and gas-fired electric power are growing while industrial markets soften. Industry tends to be more cost sensitive: when prices rise, demand softens as they conserve or relocate to areas with cheaper energy.

Factors other than cost, however, affect residential and commercial demand. Home construction, environmental issues, improvements in lifestyle and government policies tend to favor natural gas for homes and businesses.

These consumers, however, burn most of their gas for winter heating or use gas-fired electricity for summer cooling, creating considerable seasonal swings for pipelines and utilities. As a consequence, demand for gas storage has climbed considerably.

"Gas prices for February delivery are more than $2.00/MMBtu higher than gas delivered in September," explains Bob Nimocks, president of Zeus Development Corporation, an energy research and publishing firm. "So gas storage is profitable. LNG peakshavers offer even higher value-added service because they provide gas straight into a metropolitan market during the coldest days of the year. Proposals for new peakshaving plants are popping up worldwide."

To examine this trend and review the challenges, Zeus Development Corporation, is hosting a conference at the Marriott Suites Midtown Hotel in Atlanta, Ga., entitled "LNG Peakshaving: Growth of End-of-Pipeline Gas Storage."

A key part of the conference is a tour of two of the nation's most advanced peakshaving facilities owned by Atlanta Gas Light at Riverdale and Ball Ground (Cherokee), Ga.

Plant personnel will show first hand how plants operate, including pretreatment, liquefaction, storage and vaporization, as well as recent innovations in safety and security.

A day of conference presentations and discussions will follow, where delegates will examine the market issues. Dana Grams, president of AGL Resources, which owns and operates five major peakshavers -- will present his views of demand. Other speakers include Andy Malone, consultant and former plant manager of the Trussville LNG peakshaver, Mike Moore, director at Falcon Gas Storage; Brian Price, VP, Black & Veatch, a major contractor and licensor of liquefaction technology; Don Coers, leading industry engineer; Sam Kumar, IHI, a major tank manufacturer; and Chuck White, VP, EnerSea, which has developed a new gas-storage technology.

More information can be obtained online at www.LNGExpress.com/PS or by contacting Rebecca Maitland, 713-333-5773 or rmaitland@zeusdevelopment.com.

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