5.3

LIQUEFIED NATURAL GAS

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Purpose

This chapter introduces liquefied natural gas (LNG).

Summary

LNG facilities convert methane from a gas into a liquid that takes up much less volume. Allowing natural gas to take up less volume makes it economical to transport overseas with transport ships. As a result, LNG technology is closely associated with a global market for natural gas. Although there are few trading opportunities specifically related to LNG, it is having a big effect on the structure of the natural gas market. On a small scale, LNG storage provides an alternative to traditional natural gas storage facilities.

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