Summary Report - 4th Quarter, 2002

The Office of Natural Gas & Petroleum Import & Export Activities prepares quarterly reports showing natural gas import and export activity. Companies are required, as a condition of their authorizations, to file quarterly reports. This report is for the fourth quarter of 2002 (October through December).

Attachment A shows the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the 5 most recent quarters.

Attachment B shows volumes and prices of gas purchased by long-term importers and exporters during the past 12 months.

Attachment C shows volume and price data for gas imported on a short-term/spot market basis.

Attachment D shows the gas exported on a short-term/spot market basis to Canada and Mexico.

Fourth Quarter Highlights: Changes in activity compared to the fourth quarter of 2001.

The Puerto Rican imports are shown in the tables above and on the next page, and in Attachment B-1. These imports are not reflected in any of the totals found on this page, as the summaries are only for trade pertaining to the continental U.S.

During the fourth quarter, 3 importers of LNG (Distrigas Corp.; BG LNG Services, Inc., and El Paso Global Gas (Cayman) Co.) brought in 35 cargoes from 3 countries (Algeria, Nigeria and Trinidad), totaling 69.4 Bcf. This compares to 13 cargoes and 32.8 Bcf in the fourth quarter of 2001, and 29 cargoes and 62.5 Bcf last quarter.

Fourth Quarter Data: Comparing fourth quarter 2002 to fourth quarter 2001 data, total imports were up 14 percent and total exports were up by 40 percent. Specifically, natural gas imports under all long-term contracts totaled 203.4 Bcf, compared to 232.8 Bcf in the fourth quarter 2001. Long-term Canadian imports decreased 10 percent (188.5 v. 208.7 Bcf). The average price of this gas was $3.89 per MMBtu, which is 67 cents higher than the preceding quarter and $1.07 higher than the fourth quarter 2001. Long-term LNG imports decreased 38 percent compared to the fourth quarter 2001 (14.9 v. 24.1 Bcf). Under long-term contracts, Distrigas imported 14.9 Bcf from Trinidad at an average price of $3.57 per MMBtu.

During the fourth quarter, 98 companies used short-term authorizations to import 859.2 Bcf, which is a 22.6 percent increase over the fourth quarter 2001 (700.8 Bcf). Of this total, 804.8 Bcf was imported from Canada at an average price of $3.87 per MMBtu, compared to 689.2 Bcf at $2.43 in the fourth quarter 2001, and 796.3 Bcf at $2.68 in the previous quarter. There were no imports from Mexico this quarter or last quarter, compared to 3.0 Bcf at $2.42 in the fourth quarter 2001. Short-term LNG imports totaled 54.5 Bcf for the quarter, compared to 47.0 Bcf last quarter and 8.7 Bcf in the fourth quarter 2001. Distrigas imported 19.1 Bcf at $3.99 from Trinidad. BG LNG imported 5.3 Bcf at $3.68 from Algeria; 5.4 Bcf at $2.71 from Nigeria; and 17.6 Bcf at $3.43 from Trinidad. El Paso imported 7.1 Bcf at $3.95 from Trinidad.

Short-term imports from Canada by point of entry:

In addition, 24 short-term export authorizations were used to export 134.7 Bcf. Sixteen companies exported 63.9 Bcf to Canada at an average price of $4.17 per MMBtu; 8 companies exported 70.8 Bcf to Mexico at $3.94; and 16.8 Bcf of LNG was exported to Japan at $4.26 (delivered).

2002 Highlights: Comparing 2002 with 2001, total gas imports increased 1.6 percent (4,075.2 v. 4,011.1 Bcf) and total gas exports increased 38 percent (516.2 v. 373.8 Bcf). Canadian imports increased 2.2 percent (3,844.8 v. 3,762.6 Bcf); Mexican imports decreased 83 percent (1.7 v. 10.3 Bcf); and LNG imports decreased 4 percent (228.7 v. 238.1 Bcf). Exports to Canada increased 13 percent (189.3 v. 167.2 Bcf) and exports to Mexico increased 87 percent (263.5 v. 140.8 Bcf). LNG exports to Japan decreased slightly (63.4 v. 65.8 Bcf).

Any questions or comments about this report should be directed to Yvonne Caudillo at (202) 586-4587 or by E-mail at yvonne.caudillo@hq.doe.gov.