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LNG Composition and Market Overview

The document discusses liquefied natural gas (LNG) and its role in the global energy market. It notes that natural gas demand is increasing and is projected to account for 30% of global energy usage by 2030. LNG has advantages over natural gas such as flexibility in sourcing from different countries and lower transportation costs over long distances. However, the infrastructure required to liquefy, transport, store and regasify LNG also makes it more expensive initially than natural gas. Technological advances have helped reduce the costs of the LNG supply chain over time. The document provides a table listing the typical composition of LNG, which is over 90% methane.

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Dhanesh Kumar
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0% found this document useful (0 votes)
17 views2 pages

LNG Composition and Market Overview

The document discusses liquefied natural gas (LNG) and its role in the global energy market. It notes that natural gas demand is increasing and is projected to account for 30% of global energy usage by 2030. LNG has advantages over natural gas such as flexibility in sourcing from different countries and lower transportation costs over long distances. However, the infrastructure required to liquefy, transport, store and regasify LNG also makes it more expensive initially than natural gas. Technological advances have helped reduce the costs of the LNG supply chain over time. The document provides a table listing the typical composition of LNG, which is over 90% methane.

Uploaded by

Dhanesh Kumar
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1.

Background Studies

The increasing demand of energy sources around the world cause the growing
demand for natural gas. By 2030 it is expected, that natural gas will be the primary
source of energy approximately 30%. This contributes to the growing of liquefied
natural gas (LNG) global market (Tesch, 2016). LNG is the cleanest form of natural
gas that contains almost than 90% methane. It is colourless, odourless, no-corrosive
and non-toxic. It is lighter than water by less than one-half. Its hazardous includes
flammability, asphyxia and freezing. (Oil and Natural Gas Properties). LNG is
produced by cooling natural gas to -161 C (Chamberlain, 2006) at which it becomes
to liquid state. The cooling process reduces its volume (Shukri, 2004) by the factor of
more than 600 times similar as reducing the volume of beach ball to ping-pong ball
volume.
LNG is more favourable compared to natural gas, includes flexibility to
receive LNG from different countries and cheaper transportation cost for distance
more than 2000 km (Adelt et al., 2011). A disadvantage of LNG compared to natural
gas is the large cost of LNG chain which consist of liquefication, transportation,
storage, and regasification. Nevertheless, with advancement in technologies and
increasing number of LNG plants causes the cost of LNG chain to decrease
(Gandolphe, 2005). By 2014 there were total of 86 liquefaction plans in 17 exporting
countries (International Group of Liquefied Natural Gas Importers, 2013) Likewise,
LNG import terminals and total countries with LNG receiving terminals increased by
the end of 2015 (104 import terminals in 29 importing countries (International Group
of Liquefied Natural Gas Importers, 2013)) Table 1.1 shows the composition of
LNG.
Table 1.1 Composition of LNG
Component
Methane
Ethane
Propane
Butane
Iso-Butane
Pentane
Iso-Pentane
Nitrogen

Mole Percentage (%)


89.63
6.32
2.16
1.20
0.00
0.00
0.00
0.69

Reference
Adelt, M., Koppe, M., Montero, M., & Peureux, G. (2011). Report on gas
composition range in Europe. Retrieved from [Link]
Chamberlain, G.A. (2006). Management of large LNG hazardous. 23rd World Gas
Conference.
Cornot-Gandolphe, S. (2005). LNG cost reduction and flexibility in LNG trade add
to security of gas supply, Energy Prices & Taxes, 29-36
Eurogas. (2015). The European Union of Natural Gas Industry, Natural gas demand
and supply - Long term outlook to 2030. Retrieved from
[Link]
%20analysis/Eurogas%20long%20term%20outlook%20to%202030%20%[Link].
International Group of Liquefied Natural Gas Importers. (2013). The LNG Industry.
Retrieved from
[Link]
he_lng_industry_fv.pdf.
Oil and natural gas properties. Retrieved from [Link]
Shukri, T. (2004). LNG liquefaction technology selection. Hydrocarbon Engineering,
Tesch, S., Morosuk, T., & Tsatsaronis, G. (2016). Advanced exergy analysis applied
to the process of regasification of LNG (liquefied natural gas) integrated into
an air separation process. Energy, 117, Part 2, 550-561.

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