CMS Energy moved a step closer to its liquefied natural gas(LNG) goals yesterday, as its energy marketing arm, CMS Marketing,Services and Trading, (CMS-MST) purchased three LNG shipments fromRas Laffin LNG Co. Limited (Rasgas) in Qatar. The three cargoes,carrying a combined 8.1 Bcf, will be delivered in November andDecember of this year and in February of 2000 to CMS’ LNG complexin Lake Charles, LA, then fed into CMS Trunkline’s interstatepipeline system. The overall cost for the shipments was notreleased.

CMS said it expects up to 25 LNG shipments to be delivered intothe Trunkline system this year. With these latest deliveries, theLake Charles facility will total 23 shipments in 1999, five ofwhich were purchased from Rasgas by CMS-MST. By comparison, thecomplex had 17 total shipments delivered in 1998.

CMS set these lofty goals because it believes LNG production andtransportation can create value from its November 1998 purchase of theTrunkline system from Duke Energy. Since the purchase, CMS hasintensified the activity of the Lake Charles facility. Thesedeliveries are the second major set of LNG shipments announced in thepast 30 days (see Daily GPI, Aug. 5). Additionally, CMS-MST agreed tobuy 9.3 Bcf of LNG in several shipments from the North West Shelf LNGproject in Australia for delivery to the CMS Trunkline LNG facilitylast April.

“Currently the U.S. gas market provides excellent opportunitiesfor LNG producers around the world. CMS Marketing Services andTrading has the experience and expertise to structure attractiveterms to meet the LNG producer’s requirements,” said David B.Geyer, vice president of CMS-MST.

Although CMS owns Lake Charles, it is not the only company thatimports gas there. Coral Energy, a Shell affiliate, recentlyentered into the LNG market by receiving a 2.8 Bcf delivery fromMalaysia at the facility in July. Coral said it expects more LNGimports in the near future. Two other companies also import LNG toLake Charles as well, a company spokesman said.

CMS-MST has annual operating revenue of more than $1.2 billion,with 7,000 industrial and commercial customers throughout theeastern and central United States and Canada. It markets annuallyabout 370 Bcf, seven million MWh of electricity, and 1.2 millionbarrels of LNG.

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