LNG—an introduction

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Produced in partnership with Hunton Andrews Kurth
Practice notes

LNG—an introduction

Copyright © 2025 LexisNexis

Produced in partnership with Hunton Andrews Kurth

Practice notes
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What is LNG

Liquefied natural gas (LNG) is a hydrocarbon, predominantly consisting of methane gas, which has been cooled to approximately -162°C, changing it from a gas into a liquid. The process of cooling and converting the gas into a liquid form is known as liquefaction. The liquefaction process reduces the volume of the gas to 1/600th of its original volume, allowing transportation and storage of greater volumes. On arrival at a destination, the LNG is regasified (essentially, re-heated) and converted back into natural gas for further distribution in its original gaseous state.

LNG is odourless, non-toxic and non-corrosive, making it a safe hydrocarbon to transport. As LNG is insoluble, if an LNG carrier experienced a spill, the LNG would evaporate rather than pollute the water. LNG is not stored or transported under high pressure and is therefore not explosive.

LNG is generally measured by weight (usually million metric tonnes or ‘MT’). In the sale of LNG, the in-ship volume is typically measured by cargo volume (in thousands of cubic metres or cubic feet).

LNG is not new technology, with

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LNG definition
What does LNG mean?

Liquefied natural gas (LNG) can be defined as meaning any combustible hydrocarbon or mixture of hydrocarbons consisting primarily of methane and including other combustible and non-combustible gases in a gaseous state which are in a liquid state at or near atmospheric pressure at sea level. LNG is a form of processed natural gas; through the process of liquefaction it is transformed into a liquid which enables it to be transported to its destination where the liquid is regasified for sale.

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