After hearing the news that our parent company, Centrica plc, signed a 20-year agreement to purchase liquefied natural gas (LNG), I thought it would be a great time to explain what LNG is and how it works. So, here goes nothing.
LNG is the result of cooling natural gas to about -260F, turning it from a gas into a liquid, coined liquefaction. Why cool natural gas to the point where it liquefies? If you want to transport it long distances and a pipeline isn’t available, liquefying the gas is the only option. The process increases natural gas’ energy density greatly, allowing it to be economically shipped. Countries that have few natural resources but strong economies, such as Japan, South Korea and Great Britain, are large importers of LNG. They have little or no domestic production and building a pipeline across large bodies of water isn’t feasible. These and other countries rely on LNG cargo tankers to supply their natural gas needs. The tankers resemble oil tankers but are specially constructed and insulated to carry the super cool LNG. The tankers dock at a terminal in the receiving country and a process called regasification takes place, or turning the liquid back into a gas so it can be injected into the pipeline infrastructure.