What does Liquefied Natural Gas - LNG mean?
Natural Gas liquefied under very low temperature and high pressure to facilitate storage and transportation in specially designed vessels. Natural Gas which mainly consists of Methane (80%) and small amounts of ethane, propane and butane is transported more conveniently as LNG.
Futures Knowledge Explains Liquefied Natural Gas - LNG
Natural Gas is mainly transported through pipelines but the pressure drops. There are technical and economic problems of running pipelines over long distances. LNG is now considered more efficient way of gas transportation.
Natural gas is cooled at minus 256 degree ?Fahrenheit (-160 degree Centigrade), it becomes liquid and more compact, occupying only 1/600th of the gaseous volume. The LNG is then transported in bulk in specially designed cargo by sea. Global demand for LNG has doubled since 2000 and is growing 8% annually and is likely to overtake pipelines for transportation of traded gas in next 20 years.