Liquified natural gas (lng)
what is lng?
Liquefied natural gas (LNG) is natural gas cooled to approximately -260°F, transforming it into a liquid that occupies 600 times less volume than its gaseous state. This significant reduction in size makes LNG ideal for transportation and storage, especially in areas without natural gas pipelines. LNG’s development in the 19th century opened opportunities to move natural gas across oceans and use it as a transportation fuel.
To transport LNG, double-hulled ships ensure safety and insulation. Upon arrival at ports, LNG is off-loaded into insulated storage tanks and regasified before entering pipeline networks. LNG can also be shipped in smaller quantities using cryogenic containers for shorter distances or stored locally in “peak-shaver” facilities to meet seasonal demand spikes.
LNG and Market Expansion
LNG enables natural gas to reach markets where pipelines are unavailable or impractical. It is transported from production regions to markets, particularly between the United States, Asia, and Europe. LNG export terminals liquefy the gas, which is then shipped in specially designed tankers with cryogenic storage. Import terminals regasify LNG for pipeline distribution to power plants, industrial consumers, and local utilities. LNG also serves as a fuel for ships, trucks, and buses equipped with specialized tanks. Some power plants store LNG as a backup fuel to meet peak electricity demand when pipeline supplies are insufficient.
LNG in the United States
In recent years, the United States has shifted from being an LNG importer to a net exporter due to increased natural gas production and expanded export terminal capacity. U.S. LNG imports peaked in 2007 at 771 billion cubic feet (Bcf), primarily from Trinidad and Tobago, Nigeria, and Canada. By 2017, imports dropped to 78 Bcf, with most entering through the Everett terminal near Boston, Massachusetts, to address pipeline constraints during cold weather in New England. In 2017, the U.S. exported 708 Bcf of LNG to 28 countries, with top destinations including Mexico, South Korea, China, Japan, and Jordan. Nearly all exports were shipped via LNG carriers, with minimal volumes transported in ISO containers or by truck. Occasionally, the U.S. re-exports imported LNG when pricing conditions are favorable.
Future of U.S. LNG Exports
U.S. LNG exports are expected to grow as new export terminals become operational. With increasing global demand for LNG, the U.S. continues to play a pivotal role in supplying natural gas to international markets, driven by its abundant natural gas production and expanding infrastructure.