What Is Liquefied Natural Gas (LNG)?
Let me explain what liquefied natural gas, or LNG, really is. It's natural gas that's been cooled down to about -260°F, turning it into a clear, colorless, non-toxic liquid. This makes it easier and safer to transport from places with plenty of natural gas to areas that need more of it.
In this liquid form, natural gas takes up just 1/600th of its original space—it's shrunk 600 times over. That's why it's ideal for shipping and storing when pipelines aren't an option. As global energy use keeps rising, I see the LNG trade becoming even more crucial.
Key Takeaways
- Liquefied natural gas (LNG) is natural gas cooled into a liquid for easier transportation.
- LNG demand is increasing as the world shifts to cleaner energy sources.
- Australia and Qatar are the top LNG exporters now, but the US should take the lead soon.
- China leads in LNG demand.
- LNG is emerging as a fuel alternative for vehicles and other applications, not just transport.
How Liquefied Natural Gas (LNG) Works
You should know that LNG is mainly for moving natural gas from one place to another, especially when shipping overseas without pipelines. There are two primary ways to liquefy it on a large scale: the cascade process and the Linde method.
The cascade process involves cooling one gas with another in a chain reaction. The Linde method uses compression, cooling, and expansion in a regenerative cycle until it becomes liquid.
While LNG is best known for transport, it's gaining traction elsewhere. The automotive sector is looking at it for fueling trucks, off-road vehicles, ships, and trains with internal combustion engines.
Global Demand for Liquefied Natural Gas (LNG)
Even with huge natural gas reserves, the US imports a bit of LNG from places like France and Trinidad. But by 2019, we were the third-largest exporter, and projections say we'll be number one by 2025, ahead of Australia and Qatar.
In 2020, South Korea, Japan, and China were the biggest buyers of US LNG. Expect more growth from Asia as they swap coal for LNG.
Once liquefied, it's stored in special tankers for transport. Don't worry about explosions—LNG doesn't explode in open air if it leaks. At the destination, it's reheated to gas form through regasification and piped to users.
Other big exporters include Indonesia, Nigeria, Russia, and Malaysia. Russia has the most reserves, followed by Iran and Qatar. Japan is the top importer, mostly via LNG.
The Future of Liquefied Natural Gas (LNG)
LNG demand has surged from almost nothing in 1970 to a big market share today. In 2019, over half came from China, Japan, and South Korea. The industry is expanding as we move away from dirty fuels like oil and coal toward cleaner options.
According to McKinsey, LNG demand will grow 3.4% yearly until 2035. Natural gas overall will be the fastest-growing fossil fuel at 0.9% from 2020 to 2035. Even in 2020, when gas demand dropped 3%, LNG grew by 1%.
