1.

Background Studies

The increasing demand of energy sources around the world cause the growing
demand for natural gas. By 2030 it is expected, that natural gas will be the primary
source of energy approximately 30%. This contributes to the growing of liquefied
natural gas (LNG) global market (Tesch, 2016). LNG is the cleanest form of natural
gas that contains almost than 90% methane. It is colourless, odourless, no-corrosive
and non-toxic. It is lighter than water by less than one-half. Its hazardous includes
flammability, asphyxia and freezing. (Oil and Natural Gas Properties). LNG is
produced by cooling natural gas to -161 C (Chamberlain, 2006) at which it becomes
to liquid state. The cooling process reduces its volume (Shukri, 2004) by the factor of
more than 600 times similar as reducing the volume of beach ball to ping-pong ball
volume.
LNG is more favourable compared to natural gas, includes flexibility to
receive LNG from different countries and cheaper transportation cost for distance
more than 2000 km (Adelt et al., 2011). A disadvantage of LNG compared to natural
gas is the large cost of LNG chain which consist of liquefication, transportation,
storage, and regasification. Nevertheless, with advancement in technologies and
increasing number of LNG plants causes the cost of LNG chain to decrease
(Gandolphe, 2005). By 2014 there were total of 86 liquefaction plans in 17 exporting
countries (International Group of Liquefied Natural Gas Importers, 2013) Likewise,
LNG import terminals and total countries with LNG receiving terminals increased by
the end of 2015 (104 import terminals in 29 importing countries (International Group
of Liquefied Natural Gas Importers, 2013)) Table 1.1 shows the composition of
LNG.
Table 1.1 Composition of LNG
Component
Methane
Ethane
Propane
Butane
Iso-Butane
Pentane
Iso-Pentane
Nitrogen

Mole Percentage (%)

89.63
6.32
2.16
1.20
0.00
0.00
0.00
0.69

Reference
Adelt, M., Koppe, M., Montero, M., & Peureux, G. (2011). Report on gas
composition range in Europe. Retrieved from http://www.ingaseu.org/docs/DB0.1.pdf
Chamberlain, G.A. (2006). Management of large LNG hazardous. 23rd World Gas
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Cornot-Gandolphe, S. (2005). LNG cost reduction and flexibility in LNG trade add
to security of gas supply, Energy Prices & Taxes, 29-36
Eurogas. (2015). The European Union of Natural Gas Industry, Natural gas demand
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International Group of Liquefied Natural Gas Importers. (2013). The LNG Industry.
Retrieved from
http://www.giignl.org/sites/default/files/PUBLIC_AREA/Publications/giignl_t
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Oil and natural gas properties. Retrieved from www.oilandnaturalgasproperties.com
Shukri, T. (2004). LNG liquefaction technology selection. Hydrocarbon Engineering,
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