LNG facilities provide delivery capacity during peak periods when market demand exceeds pipeline deliverability.

LNG facilities are, however, more expensive to build and maintain than developing new underground storage facilities.

Although the total capacity for these LNG facilities does not match those of underground storage in scale, the short term high deliverability makes up for that.

Such a project raises the prospect of increased foreign investment in the future as LNG facilities are built.

The MoU was extended in December 2006, to incorporate development of a four-train LNG facility with a 20 mtpa capacity.

The LNG facility is operational, while the cargo port is under development.

Building an LNG facility would not work in the North slope as there is only a 3 month window for tankers to move the gas.

Iran holds the world's second largest natural gas reserves-after Russia-and development of LNG facilities would allow the country to export gas around the world.

On March 16, 2000, the project received Commission authorization to re-commission and renovate the LNG facilities.

In 2004 the Houston-based firm approached the corporate arm of Haisla council regarding a potential construction project for a barge-based LNG facility.