CMS Marketing, Services and Trading (CMS-MST) continued itsliquefied natural gas (LNG) buying binge last week, announcing 10more deliveries from Qatar to the CMS Trunkline LNG facility inLake Charles, LA. The deals bring the number of announced LNGcargoes headed to the Trunkline facility over the next two years to26.

Financial terms of the agreements were not disclosed. The totalgas volume to be delivered into the Trunkline system will be 24Bcf. Three of the cargoes will come from Qatar Liquefied Gas Co.for delivery from August through December. The other seven cargoeswill originate from Ras Laffan Liquified Natural Gas Co. (Rasgas)for delivery beginning June through April 2001.

The announcement extends a relationship between CMS and theQatar suppliers. Last October, CMS and Ras Laffan announcedagreements for shipments of seven LNG cargoes this year. BesidesQatar, CMS imports load from the North West Shelf Venture inAustralia and the LNG project in Trinidad. CMS-MST also is apartner in a master agreement with Abu Dhabi Gas Liquefaction Co.(ADGAS) of the United Arab Emirates for the purchase of spot LNGcargoes.

The company is still actively developing additional long-termand short-term LNG opportunities, said Tamela Pallas, president ofCMS-MST. Overall, the company said it hopes to import around 30shipments this year. LNG import growth has been a priority of CMSever since it bought the Trunkline system from Duke Energy inNovember of 1998. CMS imported more than 25 LNG shipments into theLake Charles facility in 1999. By comparison, only 17 totalshipments were delivered in 1998 (see NGI, Oct. 11, 1999).

Industry reports are in agreement that LNG use is on the rise.Last month, the investment firm Friedman, Billings, Ramsey &Co. Inc. said it expects LNG to rise from 1% of the total U.S. gassupply to 3% by 2002. The firm said high prices in natural gascombined with the abundant LNG supply found abroad “should promotethe use of LNG as an everyday supply source rather than strictly apeaking fuel.”

And just yesterday, a report issued by the BusinessCommunications Co. predicted that domestic LNG demand would jumpnearly 12% by 2004. The firm said $418 million was spent ondomestic LNG production in 1999. It expects that number to grow to$727 million by 2004. John Norris

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