9.2 Drivers and Enablers for LNG Development

  • LNG density is 600 times greater than gaseous NG
  • Energy density on volume basis is 2.4 times CNG and 60% of diesel fuel
  • Natural Gas (& LNG) is clean, low carbon intensity, relatively secure and diverse supply, and not nuclear
  • Future Natural Gas supply (& LNG) is supported by advances in upstream production technology allowing access to vast unconventional resources
  • LNG allows technically and economically feasible NG transport over very long distances (longer than pipelines and where pipelines are infeasible)
  • LNG developed over extended timeframe. Upstream natural gas production was already feeding pipeline systems before the LNG industry. Early LNG liquefaction and regasification development was for storage rather than export. Therefore LNG industry did not need to develop all parts of the value chain at the same time.
  • Early LNG developments were driven by government development intervention and NOCs.
  • Learning curve benefits have been demonstrated due to improved process technology performance (led by technology provider competition), increased maximum train production capacity (facilitated by key equipment providers for compressors, motors, heat exchangers) and improved project execution (led by EPC contractors)
  • Plant capacities increased from 1 MTPA per train in 1960s to 5 MTPA (Atlantic LNG Train 4) in 2005 to 8 MTPA (QatarGas II) in 2009