LNG (Liquefied Natural Gas)
Natural gas cooled to about minus 162 degrees C, shrinking its volume around 600-fold so it can be shipped by tanker between markets without pipelines.
Liquefied natural gas links gas markets that pipelines cannot reach. The chain has four steps: liquefaction, shipping in insulated membrane or Moss-type carriers (typically 150,000–180,000 m3), storage, and regasification at an import terminal or floating storage and regasification unit (FSRU).
Liquefaction consumes about 8–12% of the feed gas, and shipping boil-off of 0.1–0.15% per day adds further losses, so lifecycle emissions of LNG are usually 15–40% higher than pipeline gas delivered over moderate distances, with large variation depending on methane leakage upstream and methane slip from ship engines.
Global LNG trade was roughly 400–410 Mt in 2024. The largest exporters are the United States, Qatar and Australia; the largest importers are China, Japan, South Korea and, since 2022, Europe, which replaced much of its Russian pipeline supply with LNG. A large wave of new capacity in the US and Qatar, more than 200 Mt per year under construction or approved by 2025, is expected to loosen markets in 2026–2030. Prices are often indexed to Brent oil (Asia) or to hub prices such as TTF and the JKM benchmark.
Related terms
All terms →- Natural gas
A fossil fuel composed mainly of methane, used for power generation, industrial and residential heat, and as a chemical feedstock for hydrogen and ammonia.
- Methane leakage
Unintended release of methane from oil, gas and coal supply chains through leaks, venting and incomplete flaring, often expressed as a percentage of gas produced.
- MMBtu
One million British thermal units (1.05506 GJ, 293.07 kWh); the standard pricing unit for natural gas and LNG in the United States and Asia.
- Lifecycle emissions
Total greenhouse gas emissions of a product or power source across its full life, from raw material extraction and manufacturing through operation to decommissioning.
- Barrel of oil equivalent (boe)
An energy unit equal to the approximate heat released by burning one barrel (42 US gallons, 158.99 L) of crude oil, about 5.8 MMBtu or 6.12 GJ.