World LNG imports have increased at an average annual rate of 7.5%, more than
doubling during the last decade. LNG now accounts for 28% of total international gas trade
and 6% of the total world consumption of gas. The increasing use of natural gas for power
generation, the dwindling supplies of gas in developed regions, and the desire to monetize
large reserves of stranded gas will keep the LNG industry growing at a fast pace. Global
LNG trade could reach 200 million tons by 2010 and 350 million tons by 2020.
Japan and Korea have been the driving forces of the LNG industry. Together, the two
countries import more than 60% of the world LNG traded volume. However, the LNG industry
is becoming increasingly more diverse. New consumers include Portugal, the Dominican
Republic and India, which opened its first terminal in early 2004. China and the United
Kingdom are also constructing their first import terminals.
The United States has surpassed France to become the world’s fourth largest LNG
importer. Over the next decade, LNG imports are expected to play an increasingly important
role as a source of natural gas supply in the United States, filling the gap from domestic
production and pipeline imports. Several projects for new U.S. LNG terminals have been
announced and all four existing terminals have plans to expand their capacities.
The so-called LNG chain consists of a number of steps that link the natural gas reserve
to the end-user. After being condensed in a liquefaction plant, LNG is transported in
specially designed double-hulled ships and unloaded to a receiving terminal, where it is
stored and regasified for final distribution. In this Review, we examine recent commercial
and technology developments in the regasification of LNG. We also present a conceptual
design and economic evaluation of a regasification plant producing 7.0 million metric tons
per year (1 Billion standard cubic feet per day) of pipeline natural gas.
By Marcos A. Cesar
