5 Summary and Conclusions (cont.) LNG is the most reasonable near-term option New Englands near-term gas supply requirements will have to be met by new LNG facilities Most likely to be located in Maritimes Canada or Quebec Not likely to be located in New England Gas infrastructure will have to conform to gas supply availability At least one or two LNG projects with access to New England markets will be required Without these projects, gas prices will continue to be very volatile and competition for gas supply will be exacerbated, particularly during the winter period The gas supply and operational benefits provided by the Distrigas facility is critical to New Englands markets A long-term reduction in gas supply from Distrigas without the availability of an equivalent replacement supply source will place upward pressure on gas prices, lead to supply limitations and decrease system reliability
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