Natural gas liquefaction

Why liquefy natural gas: to reduce its volume (by a factor of 600) so that it can be transported by ship over very long distances, or across deep seas (when pipeline transport is uneconomical). An ever-increasing proportion of natural gas is transported in this way, as local and nearby resources are depleted at major consumers in both the USA and Europe. This proportion, around a quarter today, could rise to over a third within 15 years, while the total quantity traded will also increase by 50% or more. Transport by ship also frees us from geostrategic constraints and means that we are not dependent on a single supplier. In 2008, some 200 million tonnes of natural gas were liquefied, 40% of which in units started up in the 2000s. Units currently under construction will produce a further 100 million tonnes. The construction of receiving terminals is also booming – 280 million tonnes installed.

Liquefaction is also used – in smaller capacities – to cope with seasonal variations in consumption, by storing part of the gas in liquid form during periods of lower consumption, and vaporizing it when demand is high.

In some countries, LNG is delivered by truck to consumers far from the gas distribution networks.