Liquefied natural gas (LNG) technology—from LNG seaborne tankers and LNG trains to floating LNG facilities have quickly gone from concept to commercialization, opening up new possibilities in new frontiers and rendering the remote—well, much less remote.
Analysts say FLNG terminals will become a major growth market within the next couple of years, as they offer more flexibility than stationary terminals.
Liquefaction of natural gas is the process of super-cooling natural gas to minus 260 degrees Fahrenheit (minus 162 degrees Celsius) at which point it becomes much safer and easier to transport. After its been shipped to its destination, regasification plants at importing or receiving terminals return the fuel to a gaseous state.
A lot of money is being dumped into LNG technology right now. It’s a major bet on the LNG market, but here’s why it’s solid:
• LNG demand is set to double over the next decade to 408 million tons a year
• Major markets for LNG are opening up and some of them can’t be reached by overland pipelines
• The Asian market is particularly hot for LNG and they are paying top dollar
• Prices and rising global demand make it worth shipping LNG by seaborne tankers
• The US may become a major LNG exporter, and customers are already lining up