What is LNG?

LNG is simply natural gas – primarily methane with small quantities of ethane and propane – that has condensed into a liquid state when cooled to minus-162.2º Celsius. At this temperature it becomes a clear, colourless, odourless liquid similar to water (although LNG weighs about half as much as water). In a well-insulated container, LNG does not require compression and yet occupies about 1/600th the volume that would be occupied by the same natural gas at atmospheric pressure and 15º C. Despite relatively high costs and energy use, LNG offers a useful way to store and transport natural gas where other, less costly means are not available.

Since the 1960s, LNG has become an increasingly important way to transport natural gas from natural-gas-producing areas such as Indonesia, Australia, the Middle East, Africa and the Caribbean to consuming areas such as Japan, Korea, Taiwan, Western Europe and the United States. In addition, some natural gas companies liquefy natural gas and store it on site for use during peak demand periods.

In Canada, two terminals are currently under construction to receive, store and regasify LNG in New Brunswick and Nova Scotia, with imports scheduled to begin in 2008. Five other terminals have been proposed for locations in Nova Scotia, Quebec and British Columbia. There are also three LNG storage facilities – in British Columbia, Ontario and Quebec – that liquefy natural gas for on-site storage and regasification.