LNG - security of supply threat diminishes

LNG supplies grew substantially through the 1980s with deliveries almost quadrupling. The point has now been reached when there is adequate scope for LNG deliveries to be guaranteed or adequate financial compensation offered. In 1990 there was an LNG delivery every 6 hours. In many instances natural gas supplies could be substituted by coal or oil or condensates or LPG. Even a small country - such as Cyprus, which has traditionally relied on residual fuel oil for electricity generation is now considering LNG. Cyprus has no natural gas. It could take coal for a new power station. It could take Orimulsion to increase its power supplies and to substitute for residual fuel oil. Orimulsion is being offered on 10 year contracts at a substantial discount on the price of internationally traded coal. A decade ago, LNG would have been an unacceptable risk to Cyprus. Now, especially in conjunction with Orimulsion and sensible reserves of generating capacity, LNG could be attractive. (author)