In this article, EPCM discusses the Liquid Natural Gas (LNG) Value Chain. Natural gas is projected to be the fastest-growing major energy source globally through 2040.

This energy source carries tremendous benefits for the consumers and the environment. It is versatile, clean-burning, and abundant.

1. Natural Gas Production and Transport for Treating

Natural gas resources can be located in remote areas, and they are produced from subsurface reservoirs, both onshore and offshore.

A complex value chain facilitates the transportation of natural gas to consumers worldwide. It begins with the process of bringing natural gas to market, which involves safely drilling wells to extract gas and other reservoir components. The extracted gas may then be processed on-site or transported to a facility for further treatment and processing.

2. Treating and Processing Natural Gas

Natural gas extracted from subsurface reservoirs can contain non-hydrocarbon, including Hydrogen Sulphide, Nitrogen, Carbon Dioxide, and Water.

The treatment removes these components from the natural gas, and a solvent is used to absorb Carbon Dioxide, Hydrogen Sulphide, and Water. Heavier liquids are removed from the lighter gas for separate processing. Water is removed, and the remaining natural gas is ready to be cooled into a liquid.

3. LNG Transport: From Gas Pipeline to Liquefaction Facility

Depending on the source of the natural gas, it may need to be transported to a liquefaction facility. The gas is transported by pipeline and can travel hundreds of kilometres or just a few metres, depending on where the gas treatment facilities are located relative to the liquefaction plant.

4. Liquefaction Process

The liquefaction plant cools the gas to minus 162 degrees Celsius. As the gas cools, its volume is reduced to 1/600th of its original size. The resulting liquefied natural gas is clear, colourless, and ready for transport.

5. LNG Storage and Loading Terminal

The LNG is stored in large insulated tanks until it is ready for shipment. Pipes connect the storage tank to a loading jetty. Regardless of outside temperatures, the LNG inside the tanks and loading facility remains at negative 162 degrees Celcius. The LNG is then pumped into specially designed LNG ships.

6. LNG Shipping

LNG shipping tankers transport natural gas across the globe. Some of the largest LNG vessels, like the Qmax, are longer than 60 city buses. Each Qmax LNG ship can carry enough natural gas to power 70,000 homes for an entire year.

7. LNG Receiving and Regasification

When the LNG ship arrives, it is guided to the receiving terminal, where the LNG is unloaded and stored in insulated tanks. The LNG is then pumped into a regasification plant, where it is warmed and converted back into a gaseous state. The natural gas is then ready to complete its journey.

8. Market

A network of pipelines delivers natural gas to power plants, where it is used to generate electricity for urban areas and supply industrial facilities involved in the manufacturing of steel, cars, and chemicals. Additionally, it provides heating, cooking, and drying for homes and office buildings.