Wednesday, June 15, 2011

Shale Kills Another Planned LNG Port

Just like video killed the radio star, shale gas killed the LNG import business.

Yesterday, Hess LNG announced that it will no longer pursue an LNG import terminal in Fall River, MA.  Dubbed Weaver's Cove, the terminal has been opposed vehemently by Massachusetts politicians in a bi-partisan fashion for the past decade.  While nobody in Massachusetts seemed to want an LNG terminal located near a populated area, it was market conditions rather than overwhelming opposition that killed the project.  With the advent of shale gas completely upending the natural gas supply and pricing paradigm in North America, I don't expect any new LNG import facilities to be built in the U.S. or Canada in the next couple of decades.

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