Liquefied Natural Gas (LNG)

LNG stands for liquefied natural gas. It is natural gas cooled to roughly -267° F at normal air pressure. It is odorless, non-toxic, non-corrosive and less dense than water.


Natural gas is the cleanest burning fossil fuel. It produces less emissions and pollutants than either coal or oil. As a liquid, LNG in not explosive LNG vapor will only explode if an enclosed space. LNG vapor is only explosive if within the flammable range of 50%-15% when mixed with air.

The conversion of natural gas into liquid is called liquefaction and is achieved through refrigeration. Liquefaction reduces the volume by approximately 600 times, making it more economical to transport between continents in specially designed ships. 

LNG is converted back to gas by passing the liquid through vaporizers that warm it. Both processes are performed using advanced technologies with a proven safety record.

Natural gas is composed primarily of methane (typically, at least 90%), but may also contain ethane, propane and heavier hydrocarbons. Small quantities of nitrogen, oxygen, carbon dioxide, sulfur compounds, and water may also be found in "pipeline" natural gas. The liquefaction process removes the oxygen, carbon dioxide, sulfur compounds, and water. The process can also be designed to purify the LNG to almost 100% methane.


Large investments in the building of gas liquefaction plants and liquefied natural gas receiving terminals in recent years have created a genuine global market place for LNG. As the importance of LNG in the commodities market will continue to increase in the future, accessing reliable market intelligence is, and will be, crucial for market participants. The LNG sector is a relatively recent, and logical, progression for our gas alliance. This is a market which has gained increasing significance in recent years. Around 85% of LNG is sold on long-term contracts.