LNG: California's New Gold Rush

Liquefied Natural Gas is leading the world's leading natural resources companies to pull out all the stops to get into the California market:

With billions in new revenues at stake, some of the world's biggest energy companies are spending millions on public relations, lobbying, contributions and foreign trips to win the right to import natural gas into the Golden State.

"For energy companies, this is California's new gold rush," said environmental consultant Bob Hattoy. "They see a potential market where the sky is the limit."

With natural gas prices in the state doubling since 2002, energy companies are proposing to bring new supplies here by building six terminals along the California and Mexico coasts to receive liquefied natural gas shipments.

Energy experts say California can support only two or three of the proposed terminals, so advocates are jockeying for an advantage.

"They are putting on the full-court press to convince the administration and the people of California that we need more natural gas, and we must get it from liquefied natural gas," said Susan Jordan, California Coastal Protection Network director. "This is the oil companies' next product line, and they are trying to figure out how to get a corner on the next market."