Some of the oil cartel, OPEC's most influential members today began discussions aimed at boosting the export of liquefied natural gas (LNG) to the US in a move seen as having significant implications for energy production worldwide.
The US is again looking at LNG because domestic production of natural gas has failed to keep pace with growing demand by electric utilities and manufacturing plants.
Energy ministers from Saudi Arabia, Indonesia, Venezuela, Algeria and Qatar - key members of the Organisation of Petroleum Exporting Countries - are among 22 nations at the two-day meeting.
While OPEC largely controls global crude supplies and prices, the Bush administration hopes to see competition grow among LNG exporters.
Non-OPEC producers like Russia, Norway, Trinidad, Australia and Oman are eyeing LNG exports to generate new revenue. Gas is often produced as a byproduct of crude oil extraction.
"It's in our interest ... to develop as many international sources as possible for US imports," US Energy Secretary Spencer Abraham said.
"LNG clearly is going to be a large factor in the world's future energy equation," he said.
LNG is natural gas cooled to minus-259 degrees Fahrenheit, shrinking the gas into liquid form for transportation aboard double-hulled tankers. The fuel is then "regasified" and fed into existing natural gas pipelines for distribution.
Yesterday, the Energy Information Administration forecast US imports of LNG would grow to 4.8 trillion cubic feet in 2025, up from 540 billion cubic feet this year.
Aging gas fields and rising demand to fuel electricity generating plants means that by 2025, natural gas produced in North America will meet only 75 percent of US demand.
Exxon Mobil, Royal Dutch/Shell and BP are among the many companies racing to develop LNG receiving terminals in throughout the US.
New LNG terminals to unload and regasify the fuel cost several hundred million dollars. Some US environmental groups have expressed concern that terminals and tankers could be an easy target for terrorist attack.
Paul Anderson adds: Anti-war campaigners will also point to the move as further evidence of a commercial motive for invading Iraq. The Gulf state has extensive untapped gas resources and 2 per cent of the world's proven reserves.
Prior to the US-led attack had plans to build a liquefied natural gas terminal.