Investing in Energy: A Primer on the Economics of the Energy Industry

LNG—Fuel for the Future

In this chapter, we dedicate attention to a very important area of natural gas development: liquefied natural gas (LNG). Over the last several years, LNG's promise has significantly risen as countries that had natural gas shortages seek LNG as an energy alternative. While the transport and storage infrastructure becomes a critical part of tapping into this energy source, access to water is essential. For countries that are not landlocked, LNG has become a viable alternative energy source.

For those new to LNG, the idea is to transport liquefied natural gas from offshore installations and transport it to shore via pipeline. According to Chevron (www.chevron.com), the LNG is then stored in a facility where it is chilled ...