About LNG

Fact and fiction of Riley video: "THE RISKS AND DANGERS OF LNG" by independent LNG safety, design and operations expert. In this exhaustive report, Jeff Beale gives an item-by-item analysis of the points made in this controversial video. To view the report, click here.

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What is LNG?

LNG is the same natural gas used by millions of Americans - and billions of people worldwide - for heating and cooking, only in a different form. It is composed primarily of methane, nature's simplest and most abundant hydrocarbon fuel.

The LNG industry in the U.S. and other countries was developed in order to bring gas reserves in distant parts of the world, such as North Africa, Indonesia, Australia, the Middle East, Nigeria, Trinidad, and even Alaska to areas where the natural gas is needed. Japan imports LNG to meet all its natural gas needs. Half of Spain's natural gas demand is met through LNG. Other countries, including Korea, Italy, Turkey, France, Belgium, Portugal, and the Dominican Republic, also import significant amounts of LNG.

Physical Properties of LNG
Like natural gas, LNG is composed primarily of methane, which is the earth's most abundant hydrocarbon fuel. Because it contains the least amount of carbon compared to other fossil fuels, natural gas burns much cleaner. Therefore, it is an excellent fuel choice from an environmental standpoint.

In its liquid state, LNG is about one-half the weight of water. It is colorless, odorless, and non-toxic. If spilled on water, the LNG will remain on the surface.

LNG turns from a liquid back to a gas at 260° F below zero. Initially, the gas is heavier than the surrounding air because it is so cold. Once the natural gas warms to 160° F below zero, it becomes lighter than air. If LNG is spilled into the atmosphere, it will initially appear as a white cloud because its cold temperature condenses the moisture in the air.

As a liquid, LNG will not burn. When converted back to its vapor state, natural gas will only burn in a relatively narrow air-to-gas mixture. At its lower limit, about 95 parts of air are needed to each 5 parts of gas. At its upper limit, about 85 parts of air are needed to each 15 parts of gas. Below the lower limit the gas will not burn because it is too "lean." Above the limit the gas will not burn because it is too "rich."

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Environmental Benefits of LNG

In addition, combusting natural gas in modern power plants that are subject to strict environmental regulation is much better alternative to uncontrolled flaring or outright release of natural gas into the environment as is done in many countries.

If spilled on water or land, LNG will not mix with the water or soil. Instead, it simply regasifies and dissipates into the air.

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Uses of LNG

The U.S. has always been able to meet its natural gas needs with domestic supplies. What makes this a bit surprising is the fact that North America is home to only about five percent of the world's natural gas reserves. The remaining reserves are located all around the world in places as diverse as Australia, Norway, Russia, Trinidad, Africa, and the Middle East. As consumption in the U.S. has increase in recent years, we have strained our production capabilities. More and more wells in more distant areas are needed to meet our demands. Consumption in many of the other countries that have natural gas reserves is no where near our demand. This leads to a situation where those other countries actively seek to find ways to economically transport resources for which they have much less demand to places where the demand is higher.

Natural Gas Facts
World natural gas consumption is rising	In 2002, the United States consumed over 22 trillion cubic feet (Tcf) of natural gas - more than any other country and a quarter of the world's production
The global natural gas and power economy is nearly twice the size of the global oil economy.	U.S. domestic production is not keeping up with growth in demand. In 2010, demand will outstrip supply by 3 Tcf
World gas demand is expected to double by 2010.	The country needs to supplement more of its natural gas supplies from other parts of the world

Turning natural gas into its liquid form is the most cost-efficient way of transporting the fuel over long distances because its volume is reduced by a factor of 600. This means that larger volumes can be shipped overseas from areas of abundance to areas of demand. Interestingly, about half of the world's remaining hydrocarbon resources are in the form of natural gas.

LNG is also made to meet local area demands in times of peak use when the capacity available for delivery on existing pipelines may not be sufficient. If everyone is using gas to heat their homes and keep their business going when temperatures drop extremely low, there may not be enough gas to go around. Keeping a supply of LNG in high demand areas for such events is crucial to meeting the needs of all users.

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The Liquefaction Process

Once cleaned, the natural gas is put into a liquefaction process. The liquefaction process works much like a typical refrigerator: cold liquid refrigerants such as propane and ethlyene are reduced in pressure and evaporated as heat is exchanged with the natural gas vapor. As this happens, the refrigerants cool the natural gas to the point where it turns into a liquid. Once the gas has been liquefied, it is sent to storage to await shipping.

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LNG Storage

Storing natural gas as a liquid is relatively common throughout the United States. There are more than 110 LNG storage locations around the country, mainly in the Northeast. These facilities enable local gas companies to meet peak demand when pipeline capacity is exceeded. Other facilities like the one in Cove Point, Maryland and the one being proposed for Sparrows Point serve to meet both base and peak load demand in various regions of the country.

Many of these "peakshaving" facilities are located in densely populated areas. In many cases, the population came in after the tanks had been built. A map showing the many LNG facilities across the United States is shown below.

The storage tanks will meet best-in-class safety codes that require an outer wall of reinforced concrete lined with steel and an inner wall of nine percent nickel steel to withstand the low temperatures of the LNG. The low temperature inner tank steel will be required to undergo 100 percent x-ray inspection and a hydrostatic test to 110 percent of the capacity prior to introducing LNG into the tank. Thick insulation will be placed between the inner and outer walls. Safety and strength are the primary design considerations. The tanks are also built to withstand high winds, floods, and earthquakes. As a further added protection, the tank area will be surrounded by an earthen dike capable of containing the full contents of all storage tanks, to avoid any leakage off site, should a breach of the secondary full containment occur.

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How is LNG Transported?

LNG ships enable clean natural gas energy to be transported to the consumer over long distances from a LNG liquefaction plant to a regasification plant where the liquid is warmed and converted back into a gas before being delivered into the local natural gas pipeline network. All LNG ships are purpose-built, double-hulled vessels. The LNG cargo is carried at atmospheric pressure in specially insulated tanks, referred to as the cargo containment system, inside the inner hull. In a modern LNG ship the cargo containment system consists of:

• A primary liquid container or tank.
• A layer of insulation.
• A secondary liquid barrier.
• A second layer of insulation.

The insulation spaces are continuously monitored by safety systems. The equipment used is so sensitive that it can detect leakage through a hole the size of a pinhead.

A small amount of LNG evaporates during the voyage and is used to help power the ship.

Ship Facts	Ship Sizes
The first marine transit of LNG occurred in 1959 when the Methane Pioneer carried LNG from Louisiana to England.	Cargo capacity range: majority between 125,000 cubic meters (m3) to 140,000 m3 (58,000 to 65,000 tonnes)
There are more than 140 LNG ships in the world with more being built each year.	Length ranges from 420 ft. (103 m) to 975 ft. (300 m).
In more than 80,000 port transits, LNG ships have never experienced loss of containment.	Draft ranges from 13 ft (6.5 m) to 39 ft. (12 m).
LNG shipping has an exemplary safety record.	Top speed - 22 knots

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The Regasification Process

LNG is returned to its original gaseous state by pumping it from the storage tanks and warming it in vaporizers for delivery to the downstream pipeline companies and end-users. Natural gas is then distributed by pipeline. The vaporization system that will be used in the Sparrows Point LNG project consist of low emission boilers, a closed loop heater/ethylene glycol system, and a closed loop shell and tube heat exchanger. The LNG is pumped to the heat exchanger where it picks up heat from the ethylene glycol. This converts the liquid back to a gas. The now colder ethylene glycol is then pumped back to the boiler where it is warmed. The process continues in this closed loop fashion as long as there is product and demand.

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LNG: The History

• Natural gas liquefaction dates back to the 19th century.
• The first LNG plant built in West Virginia in 1912. It began operation in 1917.
• The first commercial liquefaction plant was built in Cleveland, Ohio in 1941.
• In 1959, the world's first LNG cargo transported from Lake Charles, Louisiana to United Kingdom. Subsequently, liquefaction plants and import terminals constructed in both the Atlantic and Pacific regions.
• Four marine receiving terminals were built in the United States between 1971-1980 -Lake Charles Louisiana, Everett, Massachusetts, Elba Island Georgia and Cove Point, Maryland
• As production techniques improved in North America, Elba Island and Cove Point receiving terminals were mothballed in 1980. The Cove Point facility continued to operate as a "peakshaving" facility that was used in periods of high natural gas demand.
• First exports of LNG from U.S. to Asia in 1969 when Alaskan LNG sent to Japan.
• The LNG market in both Europe and Asia continued to grow rapidly from that point forward.
• In 1999, first Atlantic Basin LNG liquefaction plant in the western hemisphere began production in Trinidad.
• Growing demand for natural gas in the U.S., particularly for power generation, results in renewed interest in LNG in U.S.
• The two mothballed LNG receiving terminals are reactivated - Elba Island, 2001; Cove Point 2003. The Cove Point facility is in the process of expansion.

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LNG Today

• Today there are 55 LNG plants that either liquefy or regasify natural gas in 12 countries.
• About 140 LNG ships operate safely throughout the world handling approximately120 million metric tons of LNG every year.
• There are currently about 200 peakshaving and LNG storage facilities worldwide, some operating since the 1960s.
• The U.S. has the largest number of such facilities in the world.
• There are more than 110 active LNG facilities spread across the U.S. with a higher concentration of the facilities in the northeastern region.

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A Typical LNG Import Terminal

Liquefied Natural Gas (LNG) is the liquid form of the natural gas people use in their homes for cooking and heating. It is also used for generating electricity at gas-fired power stations.

At the production location, natural gas is converted into liquid through a low temperature condensation process called liquefaction. The LNG is cooled to a liquid at 260° F. As it is condensed, its volume is reduced over 600 times from that of natural gas. Liquefying natural gas is necessary to economically transport the fuel long distances at atmospheric pressure in purpose-built, double-hulled ships to the market area.

Once it arrives at the import terminal, the LNG is returned to its original gaseous state by warming it for delivery at pipeline specifications. The gas is then distributed to end-users by conventional pipeline.

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