The explosion and subsequent fire at the LNG facility at Skikda, 600 km east of Algiers, claimed the lives of 24 factory employees and injured 80 others. Eight people were also reported missing. The explosion has tainted the safety record of the LNG industry, which has been comparatively incident free in its four-decade-old history.

It has been described as the worst LNG accident since 1975 when about 40 people died in an explosion in Staten Island, United States.

Engineers on all LNG projects in this country, planned or in production, are waiting for the cause of the explosion, obviously looking to see if there are lessons that can be learnt to prevent a similar accident in this country. At this stage early reports point to maintenance failures at a boiler not associated with the liquefaction plant, although no reliable information has yet emerged.

A number of LNG receival points have been planned for both coasts of the United States and in Mexico to ease the gas shortage, but a combination of terror concerns, environmental concerns and general safety worries have created an upswell of resistance, impacting the efforts of gas marketers.

Unites States security officials are worried a hijacked gas tanker could be used a giant floating bomb, and has enacted globally reaching maritime legislation as a result. Community groups have protested against the construction of LNG ports, floating or land based, on environmental grounds and the Mexico general population does not comprehend the difference between LNG and LPG, which caused an immolation in Mexico city in 1984, killing 498 people.

When asked if this disaster would heighten the existing safety concerns in Mexico and California, a ChevronTexaco spokesperson said the company would not be able to comment without knowing the full facts of the incident which will only come out after an investigation and release of a report of the findings.