The Norwegian project, Snohvit, looked as if it may have received a final go-ahead before the end of the year, but government elections and new tax regimes caused a two-month delay. Project partners are eagerly awaiting the parliament decision, expected by 7th March 2002, to see if this ambitious project will finally fly. The high northern latitude of the site makes this plant an LNG engineer's dream as he finally has cold water cooling!

Angola was raising expectations early in 2001 for a 2005 start up but by the end of the year this had slipped to 2007 at the earliest. No doubt the merger of Texaco and Chevron has caused some delay but the organisation of the proposed partnership with other oil companies in Angolan waters is the main reason. Any further delay for Angola could have long-term consequences as Nigeria may well surge ahead as the only real African LNG exporter and as Nigeria LNG seeks financial closing for trains four and five and talks of a new project near Escravos. War-torn Angola could suffer from wary financial investors who try to minimise risk exposure who could see Nigeria as a proven success story. Timing is critical for LNG projects to be successful, and missed commercial opportunities can cause years of delay.

Algeria continues in its usual format but there is talk of increased production, but LNG may have to give way to pipeline investment with a partnership that includes TotalFinaElf, proposing a second pipeline connecting Algeria and Spain. RasGas has started its expansion to service the Petronet LNG contract in India. Further expansion is planned for the Italian Edison contract which unlike the fob Petronet agreement will be ex-ship. The shipping contract for the Edison deal is now in the final stages of tender with five shipowners hoping to be lucky in securing a four-ship deal. Oman LNG was one of the projects suffering from the fall out of Enron's Dabhol India collapse only months before the 20-year delivery contract was due to start. Indications of problems emerged early in 2001 when Enron was unable to receive due payment from the Maharashta State Electricity Board for electricity supplied from its Dabhol power plant (at that time fuelled by naphtha). The collapse of Dabhol also caused some concern to Mitsui OSK who had a LNG ship on order at Mitsubishi that was finally delivered in November 2001. This was the first example of old LNG "deja vu", with a ship ordered but no longer with a viable project. Fortunately a temporary (?) solution has been found with the vessel now chartered to Oman LNG for ex-ship deliveries to new short-term buyers for the lost Dabhol quantities. Abu Dhabi was also due to supply LNG to Dabhol, for smaller quantities, but little has been reported as to who or where these contract quantities will go. The western markets can absorb the LNG but the market price may not satisfy the exporter.

The first real LNG plant interruption in the industry's history due to political unrest occurred early in 2001 when ExxonMobil shut down its Arun plant in Sumatra (Indonesia) due to terrorist activities in the area. The LNG buyers, however, hardly noticed the event as the other LNG plants in south east Asia were able to assist and service the contracts between themselves. The LNG "club" once again demonstrating its ability to offer its members the true benefits of "membership". Australia finally saw financial approval given for train four with expected start up in 2004. Japanese buyers are once again the main recipients of the gas, but no longer 
 

Alternative sources of propulsion must be the main area of concentration for this decade as environmental issues assume greater global importance. LNG ships are the only vessels in operation today that consume an equivalent of about 180 tonnes per day: the oil industry stopped using turbines in the mid-70's. The LNG carried may not offer any pollution hazard but the 5-6,000 tonnes of heavy fuel oil could, let us not forget that the cargo on board the 'Erika' was fuel oil