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New England Report on LNG Expenses

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From the news at Maine Today comes an in-depth analysis article resulting from local opposition on many fronts to offshore LNG terminals, "With rejection of latest LNG suitor, proponents examine Maine options." The article mentions a report released by the Power Planning Committee of the New England Governor's Conference.
In March, the committee released a report analyzing the region's future demands for natural gas. The governors of the six New England states asked for the study last fall so they could better respond to LNG project proposals.

The committee looked at nine different energy options, including LNG, nuclear power and coal. They hope their findings will help governors chart a long-range plan for meeting future energy needs.
The entire report can be downloaded here.

The Power Planning Committee analysis of increased nuclear generation found little impact on peak LNG prices, due to only a small change in natural gas reserves, and uncertain effect of lower electricity costs on the national or international market of LNG (which is driven by several factors outside of electric generation, such as its use in producing fertilizer). This is an indication that the LNG market is now supply-driven; the US will use all it can get, regardless of cost, because of the demand and versatility of this product for multiple essential uses.

The report does note positive effects on the electricity market (instead of just the LNG market) through fuel diversity. Additionally, the cost of new nuclear production is offset by decreased use of expensive LNG for electricity generation.

The report goes on to confirm the lowest cost options for the New England region, after increased energy efficiency measures, were coal gasification and expanded nuclear power production. Then came renewables, and lastly, expanded LNG use (due to the rising cost of natural gas). However, it stopped short of recommending new nuclear power production because of the long lead times – the analysis assumes 1000 MWe station online by 2011.

Since lower electricity prices are not only good for the economy, but they are good for those least able to pay for power consumption, it is high time for responsible leadership in all regions of the country to take the long view and support the construction of new nuclear power production.

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