HOUSTON, TX--(Marketwire - Oct 25, 2012) - Research by Zeus Development Corporation has determined that North American LNG fuel delivery capacity is a mere 3 million gallons (300 trailer loads) per day. It will have to grow vastly if it is to serve many of the fleets and industrial power users that currently consuming 150 million gallons of diesel per day. For a complete list see http://member.zeusintel.com/LNGFuel/Plant/.
Many LNG plants, however, are located in regions where markets haven't developed, while shortages are occurring where demand has already accelerated. Other plants are terminals where high cost imports cannot compete with domestic LNG.
With oil and natural gas price differentials near all-time highs, consumers do not want to wait three years for new plant construction. Demand in some regional markets, especially those where drilling rigs are running on LNG, is surging as new engines and fuel stations are completed.
"New liquefaction plant development can take more than 36 months, which creates volatile swings between supply and demand as one lurches over the other," noted Tom Campbell, Energy Analyst at Zeus. "As a result, it is not unusual to see LNG shipped hundreds of miles into deficit regions to meet growing demand."
To quantify the market and predict how this may unfold, Zeus is conducting a detailed research report and comparison to other industrial markets where new technologies have evolved. The report will review the market by Petroleum Administration for Defense Districts (PADDs), comparing current, under construction and proposed LNG plants to identify where shortages are most likely to occur.
Summary results will be presented at a seminar entitled North American LNG Fuel Supply, on Dec. 13, in Houston. Guest speakers, including gas producers, utilities and entrepreneurs, will share their experiences on what it takes to add capacity in an increasing tight market. Discussions will cover new plants as well as opportunities for converting existing infrastructure to produce LNG. More information can be obtained online at http://www.zeusintel.com/LNGFS2012.