Waterborne Energy Forecasts Sluggish U.S. LNG Import Volumes to Continue Through...

Waterborne Energy Forecasts Sluggish U.S. LNG Import Volumes to Continue Through 2008

'Perfect Storm' of Factors Result in LNG Moving East
HOUSTON--(Business Wire)--
Waterborne Energy predicted today that U.S. LNG import volumes for
2008 are likely to hit 420 bcf., falling well short of last year's 770
bcf., and "staggeringly" below what industry observers were
projecting.

"We knew U.S. LNG imports would fall short of 2007 volumes when we
saw delays in new production and demand rising in Europe and Asia,"
says Steve Johnson, president of Waterborne Energy Inc., a
Houston-based consulting group that specializes in LNG markets.

According to Johnson, drought conditions in Spain, a prolonged
nuclear shut down in Japan and increased demand for LNG in power
demand have changed market dynamics.

"When demand increases and supplies remain flat, the U.S. is the
first to come up short," says Johnson. "The U.S. serves as the 'sump'
for excess supplies of LNG and is the only country whose imports are
largely driven by profit and not necessity. So, product we expected
here is now being sold to the highest bidders in Asia and Europe."

Industry observers were hoping for another record year of U.S. LNG
imports based on 50 bcf per month of new production that was expected
to hit the market earlier this year.

"Delays at projects in Norway, Qatar, Nigeria, Australia, Russia
and Yemen resulted in short supplies," says Johnson.

Still optimistic, Johnson expects a recovery for U.S. LNG imports
next year, if planned new production of 72 bcf. per month comes
online.

"The more LNG that comes online prior to next summer, the bigger
the impact on U.S. import volumes. We could see volumes in excess of
2007 levels of 770 bcf."

About Waterborne Energy, Inc.

Waterborne Energy monitors, analyzes and reports on global import
and export shipments of Liquefied Natural Gas (LNG) and Liquefied
Petroleum Gas (LPG). Published since 1982, Waterborne Reports offer
subscribers exclusive and comprehensive analysis of LNG and LPG
markets throughout the United States, Central and South America,
Europe and Asia. Unmatched in the industry for accurate, real-time LNG
and LPG information, Waterborne Reports include bimonthly tracking
summaries of volume totals by vessel and by port, terminal capacities,
ownership and expansion news and much more. Headquartered in Houston,
Waterborne has offices in Dublin and London; for more information,
visit www.waterbornelng.com.

Foresight Communications Group
Pamela McConathy, 713-416-4410
pam@thinkforesight.com

Copyright Business Wire 2008