What is LNG?

History of Liquefied Natural Gas

Natural gas liquefication dates back to the 19th century, when British chemist and physicist Michael Faraday experimented with liquefying different types of gases, including natural gas. German engineer Karl van Linde built the first practical compressor refrigerator machine in Munich in 1873.  The first liquefied natural gas plant was built in West Virginia in 1912, while the first commercial liquefication plant was built in Cleveland, Ohio, in 1941. The LNG was stored in insulated tanks at atmospheric pressure.

As of September 2004, there were four operating LNG import terminals in North America with a combined peak sendout capacity of 3.105 billion cubic feet per day (or "Bcf/d") and expansion plans for a further 2.63 Bcf/d. In addition, there were plans for another 46 LNG import terminals with an expected total combined peak sendout capacity of more than 45 Bcf/d. Of those 46 terminals, eight, with a total peak sendout of 8.9 Bcf/d, had received final regulatory approvals. Another 24 projects are already in various stages of the regulatory approval process, and 14 additional LNG projects remain in the planning stages.

Transportation on the High Seas

Liquefying natural gas made it possible to transport the fuel to distant destinations. In January 1959, the world's first LNG tanker, the Methane Pioneer (a converted World War II Liberty freighter) carried liquefied natural gas from Lake Charles, La., to Canvey Island, United Kingdom. This voyage demonstrated that large quantities of liquefied natural gas could be transported safely across the ocean. The Methane Pioneer subsequently carried seven additional LNG cargoes to Canvey Island.

In 1964, the British Gas Council began importing liquefied natural gas from Algeria, making the United Kingdom the world's first LNG importer and Algeria its first exporter. After the concept was shown to work in the United Kingdom, additional marine LNG liquefication plants and import terminals were built in both the Atlantic and Pacific regions. In 1999, the first Atlantic Basin LNG liquefication plant came on line in Trinidad and Tobago. This event, combined with increasing U.S. natural gas demand, particularly for electric power generation and increasing natural gas prices, has resulted in renewed interest in liquefied natural gas for the North American market.

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