CERA director: LNG faces a barrel of challenges

It seems that the only challenge liquefied natural gas (LNG) doesn't face is a shortage of global gas supply. Hurdles that this suspected savior of the world's energy future must cross include permitting, transporting supplies to markets worldwide, cost of materials and the limited number of players who can carry out massive LNG projects, according to Michael Stoppard, senior director, global LNG, of Cambridge Energy Research Associates. "CERA believes the U.S. is the key growth market in volume terms for LNG," Stoppard said at CERA's recent conference in Houston. "There will also be high numbers in China by 2020, but the real drive for LNG growth will be based on developments in North America." The problem with counting on North America for much of the growth in LNG demand is the large volume of regulations that have been placed on LNG facilities by entities ranging from environmental groups to the U.S. Coast Guard.