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LNG may not fix gas supply problem

Despite its long-term promise, liquified natural gas (LNG) will only have a minimal impact on a significant US gas storage shortfall in the winter of 2003/2004, says Energy Security Analysis Inc (Esai), a Boston-based research firm.

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Esai predicts a storage shortfall of about 750 billion cubic feet in November,given normal summer demand. That would leave US storage capacity only 76% full.Even full use of the four existing LNG terminals in the US would only boost storageto 82%, Esai says.

The US is facing its worst natural gas supply shortage in over 25 years, as increaseddemand from the power generation sector has

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