Ending a record year for LNG imports, CMS Trunkline LNG Co.announced plans for a possible expansion of its LNG import terminalin Lake Charles, LA. The company is conducting an open season tooffer firm, long-term LNG terminal services starting in January2002.

“The outcome of this open season will help CMS Trunkline LNGplan for the future use and potential expansion of its LNG terminalin Lake Charles, LA. This terminal will be an important contributorin helping to satisfy the growing natural gas demand in the U.S.market,” said Christopher A. Helms, president of CMS Panhandle PipeLine Companies.

In contrast to the tight economics of the past, record highdomestic gas prices have preserved favorable economics for LNGimports for years to come.

CMS is not alone in the LNG boom in the United States this year.There has been a frenzy of activity in the relatively small U.S.LNG sector, including plans to recommission two moth-balledterminals: Cove Point LNG in Maryland and Southern LNG’s terminalat Elba Island, GA. In addition, Columbia Gas sold its ownershipstake in the Cove Point facility to Williams, and Cabot LNG soldits LNG facility in Boston — the only other active importterminal besides CMS’s Lake Charles facility — to Belgium’sTractebel.

The CMS LNG facility has an existing capacity to receive 90 shipcargoes per year at 2.8 Bcf of gas per ship, and is expected toreceive a record 55 ship cargoes, 154 Bcf of gas, by year-end. Nextyear, the terminal could come much closer to reaching its capacity.

The open season for the expansion extends from Dec. 15 throughFeb. 15. Requests for service should have a minimum length of 10years.

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