Energy Probe

Is the United States running out of natural gas?

U.S. President George W. Bush's top energy regulator sparked stupor in Quebec this week when he said it might be possible for liquefied-natural-gas plants proposed for eastern Canada to meet much of the energy demand of New England.

Activists were outraged by Patrick H. Wood III's words, saying there's no way people in Quebec, New Brunswick or Nova Scotia should approve industrial energy projects rejected by their U.S. neighbours.

Gaz Metro's proposal for a liquefied-natural-gas terminal near Quebec City, already meeting fierce opposition from some local residents, is under further pressure by regulatory wrangling taking place hundreds of kilometres away before the Ontario Energy Board.

Some people familiar with the matter say the regulatory clash threatens to scuttle plans for the first super-cooled natural-gas terminal in Quebec. It could also bolster opponents of LNG, who claim the danger of the technology triggering catastrophic explosions far outweighs its market potential.

WASHINGTON - A terror attack on a tanker delivering liquefied natural gas at a U.S. port could set off a fire so hot it would burn skin and damage buildings nearly a mile away, government scientists say in a report expected to influence where new multibillion-dollar terminals will be built.