During a speech in Wisconsin yesterday, Bush acknowledged the difficulties facing the industry in building LNG terminals, but warned states such as California that a new energy bill he signed into law in August last year gives Washington the right to locate receiving terminals.
He also said one of the best ways for the US to secure supply of LNG was to expand the ability to receive LNG.
Woodside and BHP Billiton have been lobbying Washington for three years to win access to the US market and sell LNG from their Western Australian fields. But concerns regarding the safety of LNG have stalled approval for a large terminal off the California coast that would transfer the gas from ships for sale in the US.
Each year, the US consumes the equivalent of all North-West Shelf gas reserves and energy consumption growth is expected to be about 1.5% per annum.
To date, Australian LNG sales have been to Asian markets in Japan, South Korea and China.
Meanwhile, Royal Dutch Shell – a partner in the $A11 billion Gorgon project – plans to sell Australian LNG to North America through a terminal in Mexico. But all of that gas may be required for use in Mexico, according to the Mexican government.
