What is LNG?

A clean and affordable method for natural gas transportation.

As a clean-burning alternative to coal, worldwide demand for natural gas is high and will continue to increase as we move toward a greener energy future.

LNG (liquefied natural gas) is natural gas that has been super-cooled below minus 260 degrees Fahrenheit (minus 162 degrees Celsius) and condensed into a liquid. It occupies 600 times less space than its gas form, which allows it to be transported in ships from remote locations to markets where it’s needed. At a receipt terminal, LNG is unloaded and stored until it is warmed back into its gaseous state and moved via pipeline to consumers.

LNG is used for the same purposes as conventional natural gas, such as heating, cooking and power generation.

Natural gas is a major source of energy in the U.S. According to the U.S. Energy Information Administration (EIA), about 25 percent of the energy used in the U.S. comes from natural gas. The major consumers of natural gas in the U.S. are: the electric power sector (31 percent), the industrial sector (27 percent), the residential sector (21 percent), the commercial sector (13 percent), and transportation & other (8 percent).

LNG terminals worldwide have an exemplary safety record due to advanced technology, well-trained professionals, a thorough understanding of LNG risks, robust safety systems and procedures, and rigidly adhered-to standards, codes and regulations. No serious accidents involving an LNG import terminal have occurred in the U.S. in over 30 years. Transportation of LNG via ship has a long record of safe operation. In LNG’s more than 50-year shipping history, LNG ships have traveled more than 150 million miles without a major incident. There have been no collisions, fires, explosions or hull failures resulting in a loss of containment for LNG ships in ports or at sea. Only eight LNG incidents have occurred worldwide and none of those led to a loss of life or a breach of the vessels’ cargo-containment systems.

Natural gas derived from LNG is the cleanest of all fossil fuels. When combusted, natural gas generates 20 percent less carbon dioxide than conventional fuels. In addition, the gases generated during the burning of natural gas are virtually free of other emissions. Natural gas is non-toxic and non-corrosive.

LNG Process

The liquefied natural gas (LNG) value chain represents $7 to $14 billion dollars of investment from start to finish.

Exploration and Production

Natural gas is extracted from underground reservoirs and sent through a pipeline to a liquefaction facility.

Liquefaction

At the liquefaction facility, after impurities are removed, the gas is sent through three cooling processes until it reaches a temperature of -260° F.

Shipping

The chilled gas, now LNG, is loaded onto specially designed tanker ships where it will be kept chilled for the duration of the voyage, which may last anywhere from four to thirty days, depending on the destination port.

Regasification

Once the ship arrives at a regasification terminal, the LNG is offloaded into large full-containment storage tanks to keep the LNG cold until it is turned back into a gaseous state.

Customers

When the LNG has been warmed back to its natural state, the gas is moved into pipelines which deliver the natural gas to customers (residential, power plants and industrial) across the country.

Liquefaction Projects

Delivering world-class natural gas liquefaction facilities to provide worldwide market access.

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