Why do we import so much natural gas... and buying more from the ruskies... when we have so much domestic supply? Can someone please explain this?
http://www.digitaljournal.com/article/270817

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Thanks. That helps explain it. jhh
FYI category, I guess:

Iroquois (sic?) gas pipeline co. has a large line coming into New England area from Canada, serves a great part of N/E and part of NYC. Therefore, Iroquis imports CANADIAN gas, not American, to feed its markets.
Lanadan, you are correct that both the Iroquois and Maritimes Pipelines currently deliver Canadian gas to the Northeast US market.
Jim, personally I consider the Eagle Ford Shale more of a South Texas play and as such is more likely to target the Texas Intrastate (Houston area) or Northern Mexico gas markets.
Based on pipeline maps I've looked at, such as the up & coming Tiger, HS gas will be moving east and at various points transfered into lines traveling northeast. I haven't yet been able to determine the final delivery point(s). One possibility is new gas fired power plants?
Sesport, natural gas delivered into the Perryville Hub area (NELA) can access markets in the Southeast, Northeast & Midwest regions via several major interstate pipelines. Eventually additional long haul pipeline capacity will be required out of the Perryville Hub.
Thanks, Les, your input is always appreciated. Good news for NE LA area.

Best, sesport :0)
JHH, the story is slightly misleading as the part of the deal involving North America was for LNG Terminal capacity and does not guarantee any actual gas deliveries to the US market. These type agreements are long term (20 years) and are required if parties need to gain access to the North American gas market in the future.

The US currently imports ~ 8 Bcfd of natural gas primarily from Canada. Canadian gas production is beginning to decline while their demand is projected to increase resulting in less gas available for export to the US. To the extent US gas production growth is not able to cover any decreased Canadian imports, LNG will be required to meet the shortfall.

Ultimately the natural price in the US versus the rest of the world will determine the level of LNG imports.

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