Despite reaching another record of 2,899 Bcf, Canadian gasimports grew by only 0.5%, or 15.4 Bcf, last year, which was thelowest growth level in the past 11 years, according to a report bythe Department of Energy. DOE attributed the slow-down to tightimport pipeline capacity. It also mentioned prices at gas importpoints (under long-term and short-term contracts) in 1997 averaged$2.11, 10% higher than average prices in 1996. The average price ofCanadian gas at major import points rose 46% over the past twoyears, DOE said.

The modest 2% increase in total imports last year to 2,993 Bcfreflects the growing difficulty moving Canadian gas into the U.S.but hides the tremendous growth in the LNG market. Although LNGstill comprises only 2.6% of the import market, the 94% growth inLNG imports last year to 77.8 Bcf, signals liquefied natural gas iscapturing a growing share of the marketplace. Several changes tookplace in 1997 that indicate LNG is becoming a much hottercommodity. Imports by Distrigas at its Everett, MA, import terminalgrew by 43% to 47.2 Bcf but imports by Duke Energy at its TrunklineLNG Co. terminal in Lake Charles, LA, soared 337% to 30.6 Bcf.Australian LNG was imported to the U.S. for the first time. And the400 MMcf/d LNG project at Trinidad and Tobago continued to advancewith deliveries to the northeastern U.S. expected to begin inmid-1999.

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