Liquefied Natural Gas Provides Natural Gas To Markets That Are Too Far From Production Sites To Be Connected To Pipelines Directly.

 

Liquefied Natural Gas 

Natural gas that has been cooled to a liquid form, around -260° Fahrenheit, for shipping and storage is known as Liquefied Natural Gas (LNG). Natural gas in its liquid condition has a volume 600 times that of natural gas in its gaseous state. This method allows natural gas to be transported to areas where pipelines do not exist.

Because of its greater reliance on oil prices, the Liquefied Natural Gas Market is particularly volatile. In most emerging economies, the spot price of liquefied natural gas is determined by oil linkage. Furthermore, the market is growing due to shifting trade and sales methods in every region. For example, wholesale gas in Europe is sold through long-term contracts, whereas gas prices in North America are established at liquid trading centres.

When pipeline transmission is not possible, liquefying natural gas is used to transfer natural gas across great distances. Liquefied Natural Gas provides natural gas to markets that are too far away from producing locations to be connected directly to pipelines. Natural gas may be transported in customised tankers to terminals all around the world in its compact liquid state. The LNG is restored to a gaseous condition at these terminals and transferred by pipeline to distribution firms, industrial customers, and power plants.

Natural gas is liquefied into an odourless and colourless liquid by cooling it to -1620 degrees Celsius. The process of liquefaction reduces the volume of gas by 600 times, making it easier to store and transport. When liquefied natural gas arrives at its destination, it is turned back into gas via a regasification process and transferred to end-users via vessels and pipes. Liquefied Natural Gas Market is gaining popularity as a cleaner-burning alternative to gasoline, diesel, and other fuels. The global liquefied natural gas market is predicted to develop due to key drivers such as increasing demand for clean energy by end-use industries, government measures to upgrade gas pipeline infrastructure, and considerable growth in global natural gas liquefaction capacity.

According to a study by Coherent Market Insights, the global liquefied natural gas market was valued at US$ 7.23 billion in 2016 and is expected to witness a CAGR of 12.8% in terms of revenue over the forecast period (2017 – 2025).

Liquefied Natural Gas (LNG) is natural gas, primarily methane, that has been transformed to a liquid state for storage or transportation.LNG is also used as a backup fuel in power plants. Utilities can store LNG on-site in cryogenic tanks by chilling gas. The utility returns the LNG to its gaseous condition and burns it to create energy when demand increases or supply dips due to limited pipeline access. LNG is frequently re-gasified and delivered over gas networks once it reaches its final destination, just as gas from pipelines. LNG is also becoming more popular as a substitute fuel for ships and trucks.