Liquefying natural gas reduces the fuel’s volume by 600 times, enabling it to be shipped economically from distant producing countries to the United States. Converting natural gas to LNG (liquefied natural gas) is accomplished by refrigerating natural gas to -260° F.

As a liquid, the gas is shipped in double-hulled vessels to terminals sometimes thousands of miles away, where it is re-gasified and moved into existing pipelines and storage facilities. Currently there are four onshore and one offshore terminals receiving LNG into the United States and three more onshore facilities are expected to be completed by the end of 2008. Countries supplying the U.S. with LNG include Trinidad/Tobago, Algeria, Malaysia, Nigeria, Qatar and Oman.

Today, LNG accounts for only 2.5 percent of U.S. natural gas consumption. But more LNG will be needed in the future because domestic production and gas imported from Canada cannot keep pace with rising demand. LNG is forecasted to become a significant contributor to the nation’s gas supply over the next decade, providing as much as 12 percent of total supply by 2015.

Advantages
LNG, like natural gas in general, is the cleanest burning of all fossil fuels and therefore offers major environmental benefits. Thanks to a large, well-established system of pipeline and distribution facilities, natural gas is available in most areas of the country, with the exception of some areas in the Northeast where heating oil is the primary winter fuel.

Natural gas reserves are abundant around the world, particularly in Middle East countries, Russia, Nigeria, Algeria and Venezuela. However, until recent years much of this resource was considered “stranded” because there was no economical way to move it to consuming markets. Advances in liquefaction and LNG transportation technologies, coupled with rising natural gas prices, have made previously stranded reserves available to the United States and other major consuming countries.

Issues
In some areas of the countries plans to locate LNG receiving terminals have been blocked by local opposition, primarily concerning safety and security issues. As a result, most new facilities under construction or proposed are in offshore locations or in areas of existing energy-related facilities.

LNG has an excellent safety record thanks to advanced technology, well-trained professionals and strictly followed regulations. Ships have carried it around the world for more than 45 years with no major accidents. Conversion facilities also have strong track records in safety. A number of safety and security systems in place help prevent incidents. Storage tanks have a double internal containment system, including very strong nickel steel alloy, then a 2-foot thick wall of concrete. These two systems have enough volume to contain all of the internal tanks' contents.

For More Information
The Center of Liquefied Natural Gas (LNG) provides a comprehensive information about how LNG is processed, transported and delivered to customers.
Fueling the Future, a new report from the American Gas Association outlining the role of natural gas and new technologies in the 21st century.