New York and NYC Must Address the Need for Natural Gas
New Report by Center for Management Analysis Details
the Need for Natural Gas as an Alternative Fuel Source

April 29, 2004 -- Liquefied natural gas (LNG) is a major source of energy that will play an increasingly important role in achieving the nation’s economic and environmental goals. For the Metropolitan area to benefit from this global source of natural gas, New York State and New York City will have to revise their rules and regulations governing the use of this fuel.

These findings are reported in a new study conducted by the Center for Management Analysis (CMA) at the C.W. Post Campus of Long Island University in Brookville, NY.

According to Dr. Matthew C. Cordaro, director of the CMA, natural gas will play an increasingly important role in achieving the nation’s economic and environmental goals. "Where there was once a glut of natural gas, the country now is moving to a point where it will require additional supplies to meet demand."

Cordaro added that the longer term demand for natural gas will increase to about 28 trillion cubic feet (TCF) by 2020, and additional sources of gas supply will be required, since North American supplies will account for about 75 percent of total requirements. "LNG is already a primary source of fuel for many foreign countries," said Cordaro. "And its use is no more dangerous — and in many cases less so — than other commonly stored and transported fuels like gasoline, diesel fuel and propane." The recent destruction caused by the home heating oil tanker crash in Connecticut illustrates this point.

A major obstacle in obtaining LNG is its immediate availability. There are only four import terminals in service in the U.S., none of which are located in New York State. There are presently also only three local LNG peaking facilities in the area: KeySpan’s Holstville and Brooklyn sites, and Consolidated Edison’s Queens site. These facilities have been in service since the late 1960’s.

According to the report, if New York State gas consumers are to enjoy the economic and social benefits of an emerging LNG market, the state and city must reconsider present regulatory obstacles to the expanded use of LNG. "The state should streamline its regulations, possibly in a fashion similar to the Article X process that was in place for electric generation, for one-stop licensing of new LNG facilities in compliance with applicable federal codes and standards," Cordaro notes. "It should also develop a policy, based on federal DOT regulations, to facilitate the intra- and interstate trucking of LNG. In addition, New York City should establish rules to facilitate the necessary upgrades of the existing sites, allow the construction of new LNG facilities and create transportation routes with the proper safeguards for the routine transport of LNG. Over the long term, the City and State should study jointly the viability of either establishing LNG terminals within the State or pursuing other alternatives to gain access to an emerging LNG market."

The Center for Management Analysis is an academically based organization designed to serve the diverse needs of government, business and the community. Its purpose is to provide a climate for research, consultation and problem solving by uniting educators and practitioners in addressing public issues through reasoned dialogue and analysis. The present focus of the Center is on issues related to energy, environmental management and economic development.

For additional information or a copy of the report, e-mail Dr. Cordaro at Mcsqd22@aol.com or phone the C.W. Post Public Relations Office at (516) 299-2332.