What is LNG?

LNG stands for liquefied natural gas. LNG is natural gas that is cooled to minus 260 degrees Fahrenheit
(or minus 162 degrees Centigrade) and condensed into a liquid. Its content is methane with small
amounts of ethane and propane.(Liquefied natural gas, or LNG, is natural gas that has been super
cooled to -260° F (-162° C) At that temperature, natural gas condenses into a liquid.
When in liquid form, natural gas takes up to 600 times less space than in its gaseous state, which
makes it feasible to transport over long distances. In the form of LNG, natural gas can be shipped from
the parts of the world where it is abundant to where it is in demand.
LNG is super-cooled natural gas, an energy source that has much lower air emissions than other fossil
fuels, such as oil or coal.
LNG is odorless, colorless, non-corrosive and non-toxic. Its weight is less than one-half that of water.
The use of LNG is a proven, reliable and safe process, and it has been used in the United States since
1944.
Is LNG a new technology or process?

No. LNG was proven viable in 1917. It was first used in the U.S. at Lake Charles, Louisiana in 1943 – 61
years ago. The first international shipment of LNG came into the United Kingdom in 1954 – 50 years
ago. The use of LNG is a proven, reliable and safe process.

Why liquefy natural gas?

The change to a liquid reduces the volume of natural gas by about 600 to 1, which means one LNG
tanker can transport enough LNG to equal 600 tanker ships carrying natural gas. Liquefying natural gas
makes it feasible to transport natural gas by tanker and to store it in preparation for vaporization and
supply into pipelines. LNG can be shipped from areas with plentiful natural gas resources to areas where
natural gas is needed.

How is LNG changed into liquid form, and then back into a gas?
Natural gas is cooled by a large refrigeration system. This conversion of natural gas into liquid is termed
liquefaction. Liquefied natural gas (LNG) takes up 600 times less space than natural gas in its natural
state. LNG is easier to transport. To transform LNG back into a gas, the liquid is passed through
vaporizers that warm it, causing it to boil and vaporize. Advanced and proven technologies are used for
both processes.

Where does LNG come from?

LNG primarily comes from areas where large gas discoveries have been made, such as Algeria,
Indonesia, Trinidad, Tobago, Nigeria, Qatar, Oman, Russia and Australia. Some LNG is produced in
Alaska.

How is LNG transported?

LNG is transported in large, specially designed ships. These ships have double hulls and are about 950
feet long and 150 feet wide. There are currently over 150 ships in the LNG fleet and more are on order
due to the expanding business.

How does LNG ultimately benefit the people ?

LNG supplements North natural gas supply. People use natural gas in their homes for cooking, and to
provide heat, air conditioning and hot water. It is an essential ingredient in producing fertilizer and
many other important products. Natural gas is a critically important fuel in the generation of electric
power. The North American natural gas market is expected to continue to grow while at the same time,
North American natural domestic gas supplies are declining. Therefore, LNG is expected to play an
increasing role the future energy mix for North America. In Baja California, Mexico, demand for energy
is increasing 7 percent to 10 percent annually. LNG will be an important source of natural gas for that
region. Additional supplies of natural gas in North America will place downward pressure on natural gas
prices.

Why is there a growing interest in LNG in the United States?

North America's demand for natural gas is increasing, yet production in the lower 48 states of the United
States is decreasing. LNG imports offer a way to obtain needed supplies of natural gas.
Statements by public officials and studies about natural gas supplies and LNG have helped to focus
attention on LNG as a solution for meeting energy needs. In July 2003, Federal Reserve Board Chairman
Alan Greenspan publicly stated that LNG could play a significant role in meeting our nation’s future
energy needs. In April 2004, Greenspan said the recent surge in oil and gas prices seems to be here for
some time, and would probably affect business investment decisions. If the rise in long-term prices
continues, “it could alter the magnitude of and manner in which the United States consumes energy,”
Greenspan said.
In October 2003, the National Petroleum Council (NPC), a federal advisory group, issued a study about
the long-term outlook for natural gas supplies. That study said LNG could help meet future energy
needs. Today U.S. LNG imports equal about 1 percent of all natural gas consumption. The U.S.
Department of Energy’s Energy Information Administration forecasts that U.S. LNG imports should
increase to 8 percent of U.S. natural gas consumption by 2010. And by 2020, says an NPC study, LNG
will make up about 17 percent of our energy use.

How significant is LNG in meeting the nation’s energy needs?

LNG currently makes about 1 percent of the nation’s energy supplies. The Energy Information
Administration forecasts that our LNG imports will increase from 2003’s estimated 540 billion cubic feet
to more than 2.2 trillion cubic feet in 2010, accounting for more than 8 percent of our total natural gas
consumption.

Can you describe the U.S. LNG facilities?

The continental United States has four marine terminals located in Lake Charles, Louisiana, Everett,
Massachusetts, Elba Island, Georgia, and Cove Point, Maryland. The United States also has about 100
small LNG storage and receipt terminals located throughout the country as part of our natural gas
distribution system. An LNG facility in Alaska liquefies natural gas into LNG for export.

LNG SAFETY PROPERTIES

Does LNG have a good safety record?

Yes. A record of 33,000 carrier voyages covering 60 million miles over a 45-year period without a major
accident is compelling evidence of this energy source’s safety. The United States also has considerable
experience handling LNG at about 100 small LNG storage and receipt terminals located throughout the
country as part of our natural gas distribution system.

During the early phase of the industry there were some accidents at a few onshore facilities. Those
incidents led to more stringent regulations for operation and safety. There have been no serious
accidents or deaths involving an LNG facility in the United States in 25 years.
For the past 45 years, ships have delivered LNG without any major accidents or safety problems. In that
time, there have been more than 33,000 LNG carrier trips, covering more than 60 million miles. Today,
more than 150 LNG tankers deliver LNG throughout the world. There has never been a serious accident,
fire or casualty involving an LNG carrier.

Will LNG burn?

For any substance to burn, there must be three components present and in the right combination: (1)
the substance, (2) oxygen and (3) heat. LNG does not itself burn because it does not contain oxygen.
However, like natural gas, LNG vapors are flammable when mixed in a 5 to 15 percent concentration
with air. If the concentration is lower than 5 percent it cannot burn because of insufficient fuel. If the
concentration is higher than 15 percent it cannot burn because there is insufficient oxygen. Therefore,
the fire hazard of LNG is preconditioned on the LNG being released; the LNG vaporizing; mixing with air
in a very narrow gas to air ratio of 5-15 percent; and finding an ignition source.

Will LNG explode?

No, because it contains no oxygen to react with the fuel. Even LNG vapors in an open environment do
not have enough oxygen to react with the fuel. LNG spill studies have shown that high winds rapidly
dissipate the LNG vapor and low winds (or no wind) keep the flammable vapor cloud very close to the
source.

LNG CHARACTERISTICS

Is LNG odorized?
The liquid is not odorized because the odorant would freeze out as a solid when natural gas is cooled
down to minus 260 degrees Fahrenheit (or minus 162 degrees Centigrade). When LNG is vaporized and
distributed, the natural gas is odorized as required by government regulations.
Is a spill detectable?
Within an LNG facility or onboard a ship, there are various types of hazard detectors used to alert
personnel to a leak or spill. These could include detection for the presence of gas, flame, smoke, high
temperatures or low temperatures. While LNG vapors have no odor or color, if an LNG release occurred,
LNG’s low temperature will cause condensation of water vapor in the air and form a visible white cloud
that would be readily apparent.

LNG RECEIPT TERMINALS

What does an LNG receipt terminal look like?

An LNG import terminal consists of the dock(s) for the ship to bring the LNG onshore, the LNG storage
tank(s), vaporizers and other equipment to turn the LNG from a cold liquid back into natural gas.

IMPORTING : There are abundant supplies of natural gas available in many parts of the world,
including the Middle East, Africa, the former Soviet Union, South & Central America, the Asia Pacific
region and Europe. The world supply of natural gas, including in North America, is a total of 5,915
trillion cubic feet, enough supply to meet world demands for 70 years.