Liquified natural gas (LNG) is the expression for methane gas that has been enhanced with the aid of chemical reactions between liquefied natural gas (natural gas) and atmospheric air. Normally in a gasification reaction, when natural gas is under pressure, it will convert to methane gas by taking up the molecular energy of the gas and vibrating rapidly. The result will be a compound called LPG (mono-gaseous hydrocarbons) or sometimes referred to as naphtha. The conversion of methane into LPG is also known as flaring. In the flaring process, excess gas is vented directly outside the gas plant.
liquified natural gas has become popular as a transportation fuel because of its high density, low cost and superior performance. It also provides a flexible source of energy that is cleaner than coal, petroleum and diesel, and far more flexible than oil. liquified natural gas is mined from areas with high-quality clay and fractured rock, and in some locations in the United States it can be found beneath the sands of the Gulf of Mexico. Qatar produces one of the world’s largest liquefied natural gases plant at Al Dhabi.
As far as the types of fossil fuels, there are two primary sources of energy in the world; coal and oil. Of the two, however, oil remains the largest and China have become an important producer of both. As the Chinese economy develops, so does the necessity for Chinese LPG and other liquefied natural gas.
In recent years, new technology has made it possible for LPG to be transported and marketed throughout the world. In addition, the world’s largest emirates, Dubai, has developed plans for the construction of large scale LPG plants in the future. In general, LPGs are transported in large trucks and tankers to be used in domestic and imported applications. There are a few problems with the transportation and storage of liquid natural gas. They tend to develop problems during shipment, especially if the tankers are designed to transport them over long distances, and they often experience problems in their transportation once they reach their destination, usually in coastal areas where salty weather can corrode tankers.
In recent years, there has been an increase in the development of LPG technology, particularly in Europe and Japan. Currently, most of Europe’s LPG facilities use the “replacement” method to store natural gas. That is, they are simply stocked with natural gas produced elsewhere, such as in North America, and then used in power generation plants, residential heating, and refrigeration applications. Japan’s major technological advancement has been the development of “regasification technology,” which allows LPG to be purified in a manner that causes no degradation in its performance.
In terms of import terminals, Canada is a major exporter of LPG and there are several large projects currently underway in British Columbia, Ontario, and Quebec. In 2021, a pipeline was built from western Canadian oil sands to New Brunswick, and this new transcontinental pipeline will eventually reduce the U.S. dependency on oil imported from Canada. In Europe, a number of proposals are being considered to build LPG export terminals along the North Sea, the Baltic Sea, and the Caspian Sea. Even though the technology to liquefy natural gas has been around for some time, it has only been in the past ten years that Europe has become a significant exporter.
As we have seen, while there may be some global demand for LPG, it is far from clear that the amount of supply will be available. There are many questions surrounding the economics of building new export terminals in the developing world, and the political and environmental implications of such plans. In China, the government recently announced that it planned to phase out coal production, and invest billions of dollars in green energy. The move appears to be an effort to lessen China’s vulnerability to the U.S. and European Union competition, which is largely due to the fact that coal is a byproduct of the country’s massive coal production.
The question of course remains whether or not China will continue to pursue this approach, and if so, how successful the strategy will be. In any event, the increased use of LPG and other greenhouse gases in China and elsewhere in the world will continue to put added pressure on efforts to develop clean coal technology and increase the supply of natural gas. While there may not be a significant change in the amount of global demand for LPG, there is a strong likelihood that the two main players in the upstream sector of the oil and gas industry will continue to find ways to reduce their overall operating costs.