Natural Gas Import & Export Regulation -
Frequently Asked Questions

QUESTIONS ON DATA COLLECTION & ANALYSES

1. Is Canadian natural gas the same as natural gas produced in the United States?
2. When did the United States first start using imported natural gas?
3. How does foreign natural gas get into the United States?
4. How many countries supply natural gas to the United States?
5. What percentage of the natural gas used in the United States comes from foreign sources?
6. How many companies are authorized to import natural gas into the United States?
7. Does the United States export natural gas to other countries?
8. I just looked at a table on natural gas imports and exports concerning trade with Canada, and the volumes reported by the Canadian National Energy Board (NEB) are different from those you reported. What accounts for the differences?
9. How frequently does your office collect statistics on natural gas imports and exports?
10. Is it possible to get a copy of the Quarterly Report before you publish it in hard copy?
11. You seem to have a lot of data but you haven't analyzed the area that I'm interested in. Can you please run an analysis of your data to address my interest?
12. I have a question of general interest that I don't see in the FAQ section. To whom do I send it?
13. Will natural gas imports from non-NAFTA countries continue to be subject to the merchandise processing fee? Is so, what is the rate?

    Question 1:  Is Canadian natural gas the same as natural gas produced in the United States?

Answer:  The components of natural gas while in the ground vary. This is true for different parts of the United States as well as Canada or Mexico. Natural gas is "processed" before it enters the pipeline system that delivers the gas to end-users, such as homeowners. Whatever differences may exist while the gas is in the ground are eliminated by the time it reaches the pipeline.

    Question 2:  When did the United States first start using imported natural gas?

Answer:   The first instance of natural gas being imported into the United States was in 1892. Canada began exporting some of its Ontario natural gas production into the United States across the international border near Niagara Falls, New York.

    Question 3:  How does foreign natural gas get into the United States?

Answer:  The majority of the foreign natural gas comes in through pipelines built across the borders from Canada and Mexico. Some natural gas enters the United States in the form of liquefied natural gas (LNG), which is natural gas that has been chilled to minus 260 degrees below zero (Fahrenheit). This LNG is transported to the United States in very large tankers and is delivered to one of four onshore LNG terminals located at Cove Point, Maryland; Elba Island, Georgia; Everett, Massachusetts; Freeport, Texas; Lake Charles, Louisiana; Sabine Pass, Louisiana; or to the offshore Gulf Gateway Energy Bridge Deepwater Port located in the U.S. Gulf of Mexico off the coast of Louisiana.

    Question 4:  How many countries supply natural gas to the United States?

Answer:  In 2007, there were six countries that exported natural gas to the United States: Canada, Mexico, Algeria, Egypt, Equatorial Guinea, Nigeria, Qatar, and Trinidad and Tobago. During 2007, approximately 82 percent of all natural gas imported into the United States came from Canada.

    Question 5:  What percentage of the natural gas used in the United States comes from foreign sources?

Answer:  About 16 percent of the natural gas consumed in the United States comes from other countries.  In 2007, Canada supplied 3,853 billion cubic feet (Bcf), while Mexico supplied almost 54 Bcf.  LNG supplies in 2007 were as follows: Algeria (74.5 Bcf); Egypt (114.5 Bcf); Equatorial Guinea (17.8 Bcf); Nigeria (95.3 Bcf); Qatar (18.4 Bcf); Trinidad and Tobago (450.7 Bcf).

    Question 6:  How many companies are authorized to import natural gas into the United States?

Answer:  As of February 2008, there were 309 companies with authority to import natural gas under the Department of Energy's two-year, blanket import authorizations. In addition, 30 other companies, under 235 contracts, were importing natural gas under long-term sales arrangements (gas purchase contracts longer than two years). These numbers vary from day to day as some authorizations expire and others are granted.

    Question 7:  Does the United States export natural gas to other countries?

Answer:  Yes. During 2007, the United States exported natural gas to Canada, Mexico, Japan and Russia. However, the United States exports relatively small volumes of natural gas. In 2006, the United States exported a total of 822.5 billion cubic feet (Bcf) of natural gas to these three countries. With regard to Japan and Russia, the LNG is exported from Kenai, Alaska.

    Question 8:  I just looked at a table on natural gas imports and exports concerning trade with Canada, and the volumes reported by the Canadian National Energy Board (NEB) are different from those you reported. What accounts for the differences?

Answer:  The principal factors which cause differences in data are the definitions of terms used. Our office collects natural gas import and export data on an equity (sales) basis, rather than on a custody (physical movements) basis, as employed by the NEB. Despite the differences in how the data are collected, the data historically have been very similar (less than one percent variance).

    Question 9:  How frequently does your office collect statistics on natural gas imports and exports?

Answer:  Our office collects data on a monthly basis and publishes natural gas import and export statistics each calendar quarter. The quarterly data are available in the Quarterly Report on Natural Gas Imports and Exports about 75 days following each calendar period. For example, first quarter statistics should be available around July 15.

    Question 10:  Is it possible to get a copy of the Quarterly Report before you publish it in hard copy?

Answer:  Yes. We will have the Quarterly Report available at this site shortly after we send it to the printer. You may download the entire report or separate tables contained in it. The Quarterly Reports can be found by pointing your browser to:

                   http://www.fossil.energy.gov/programs/gasregulation/analyses/Analyses.html

    Question 11:  You seem to have a lot of data but you haven't analyzed the area that I'm interested in. Can you please run an analysis of your data to address my interest?

Answer:  While we do not have the resources to address all analytical concerns that our customers may be interested in, we will develop responses, if possible, to specific questions about our data. In some instances where the customer's request is elaborate, this may not be possible. In other cases, the customer's request may become the basis for a future Quarterly Focus article. In all cases, please feel free to make your request, by e-mail to ngreports@hq.doe.gov if at all possible, and we will try to accommodate you.

    Question 12:  I have a question of general interest that I don't see in the FAQ section. To whom do I send it?

Answer:  Larine Moore would be happy to receive and answer your question.

    Question 13:  Will natural gas imports from non-NAFTA countries continue to be subject to the merchandise processing fee? If so, what is the rate?

Answer:  Yes, non-NAFTA countries will continue to be subject to this fee after June 30, 1999. Natural gas imports from non-NAFTA countries, such as Algeria, the United Arab Emirates, and Australia, will continue to be subject to the merchandise processing fee, which is currently 0.21 percent of the value of the commodity imported.