Fossil Energy Liquefied Natural Gas Value Chain OFFICE OF OIL & NATURAL GAS

Background 1 2 3 Natural gas consists almost entirely of methane (CH4), the simplest hydrocarbon Loading compound. Liquefied natural gas, or Natural Gas Processing Transportation Liquefaction Plant LNG, is natural gas that has been Production 4 treated and super-cooled to a liquid form, which makes it much easier LNG Tanker to store and transport long distances when pipeline transport is infeasible or Shipping to Destination uneconomic. This flexibility enables the Ocean Transport export of natural gas as LNG to energy Natural Gas 5 Unloading 6 markets overseas through the use of Distribution Network LNG tankers and terminals. Receiving Terminal (Regasification & Storage) Industrial LNG Value Chain Uses The LNG Value Chain, described Power below, encompasses the production, Generation processing, and conversion of natural gas to LNG, its long-distance Virtual Pipeline transportation, and regasification, as it travels from the wellhead to end-users. degrees Fahrenheit (-162 degrees a regasification plant, where it is Celsius), reducing its volume by 600 heated and allowed to expand back 1. Natural gas is extracted from times. LNG is a clear, colorless, and into its original gaseous state, for subsurface reservoirs and non-toxic liquid, which is stored in delivery into the natural gas pipeline transported in small pipelines, often large cryogenic tanks until it’s loaded system. A distinctive odor can be referred to as a gathering system, to into an LNG tanker. added to gas for safety, so people processing facilities for removal of can detect leaks during its delivery impurities and natural gas liquids. 4. LNG is pumped from storage tanks and use. Alternatively, a portion of Extracted natural gas can contain into specially designed doublehulled the LNG delivered can be put into non-hydrocarbons, including tankers for shipment around the smaller containers and loaded onto hydrogen sulfide, nitrogen, carbon world. Vessels used for U.S. exports trucks, barges, or rail cars that act dioxide, and water. Natural gas typically have a carrying capacity as a virtual pipeline to deliver LNG liquids, like propane or butane, are between about 3.0 and 3.7 billion to more remote areas not served by also extracted and sold separately. cubic feet (Bcf) of natural gas (or about 62,000 and 77,000 metric tons traditional underground pipelines. 2. Processed natural gas is transported of LNG). For context, a typical U.S. 6. Natural gas can be transported to the liquefaction plant via tanker carrying the equivalent of 3.5 via large diameter transmission pipelines. The feed gas into Bcf of natural gas could support the pipelines to local distribution liquefaction facilities must be clean, daily natural gas needs of Spain. networks of pipelines for delivery to dry, and free of impurities before residential consumers, businesses, liquefaction can take place. 5. When the tanker arrives at its destination, LNG is unloaded at the industrial facilities, and power 3. At the liquefaction plant, purified terminal and stored in cryogenic generation plants. natural gas is converted to a liquid tanks. state by chilling it to about -260 LNG is subsequently transferred to

For more information, visit: Information current as of October 2020. Fossil the Office of Fossil Energy’s Energy Office of Oil and Natural Gas webpage (https://www.energy.gov/fe/science-innovation/oil-gas-research).

OFFICE OF FOSSIL ENERGY