Mercator Energy may be based in Littleton, CO, but President John Harpole has his eyes on the Gulf of Mexico and liquefied natural gas (LNG) on his mind.

Burgeoning global LNG supplies, from Qatar and Russia in particular, will be needing a home in a world where gas demand has been raked by economic recession. The United States — with its abundant gas storage capacity — is a likely destination, Harpole told NGI.

“I believe that import number will be by August at least two ships a day, or 6 Bcf/d,” he said. So far in April imports have been running about 1.2 Bcf/d, according to Tudor, Pickering, Holt & Co. Securities Inc.

LNG from Russia’s Sakhalin II production area as well as from Qatar, where capacity is being expanded, could very well flow at any price, Harpole thinks.

“I just don’t think those producing countries can afford to shut in a $14 to $20 billion [liquefaction] facility because they don’t like the worldwide price of gas,” Harpole said. “And if they’re not buying gas in Asia or Europe you’re probably going to send that gas here.

“It’s not necessarily the price that attracts LNG to the U.S. but it is as much a place to put gas, and that’s the availability of our gas storage.”

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