US gas utilities call for more domestic drilling, LNG imports

Washington (Platts)--12Apr2005

The American Gas Assn called for legislation being taken up Tuesday in the US
House of Representatives to provide for more domestic gas production,
liquefied natural gas imports and funding for low-income consumer subsidies.

In an Apr 5 letter to US House Energy and Commerce Committee Chairman Joe
Barton (Republican-Texas) released by AGA on Tuesday, the group urged him to
"do everything in your power to reduce natural gas prices" as the committee
continues marking up the Energy Policy Act. The bill is comprehensive and
largely repeats attempts of past years. Many amendments on various titles are
expected. 

The committee reconvenes later Tuesday to take up where it left off Apr 6 and
is likely to get to the oil and gas title. AGA did not specify how it wants an
LNG provision to read, but did assert that the bill "should help connect the
US to the vast, worldwide market for liquefied natural gas by facilitating the
siting of LNG receiving terminals."

Increasing supply from domestic sources, such as the Intermountain West, the
Gulf of Mexico and the Outer Continental Shelf, would also bring "relief from
high prices," AGA said. Also, AGA asked for the bill to ease the cost of
building new gas distribution lines by cutting the depreciation period to 15
from 20 years.

This story was originally published in Platts Natural Gas Alert
http://www.naturalgasalert.platts.com

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