Liquefied Natural Gas

Natural gas chilled to about minus 160 Celsius for ship transport, the link between regional gas markets.

Overview

Liquefaction plants, called trains, chill gas into liquid at roughly one six hundredth of its volume, moving it by tanker to regasification terminals. Qatar, the United States, Australia, and Russia lead exports, with Japan, Korea, China, and now Europe as the demand centers. Pricing splits between oil linked legacy contracts in Asia, Henry Hub plus tolling fees for US cargo, and growing spot trade referenced to Korean and Dutch hubs. Tankers reroute within weeks, making LNG the swing supply that arbitrages global gaps, and winters with storage draws can triple Asian spot prices. Long term offtake deals finance new liquefaction, and the US went from importer to top exporter within a decade of shale.