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LNG Value Chain

An LNG supply chain consists of four main links – natural gas Exploration and Production; Treatment and Liquefaction; Shipping; and Receiving and Distribution.

Exploration and Production

Image courtesy of BG Group

Extraction of oil, natural gas and produced water from natural reservoirs.


Treatment and Liquefaction

Image courtesy of BG Group

Treatment of natural gas to make it suitable for processing in liquefaction plant. Processing includes removing liquids, solids, vapours and impurities.

Liquefaction converts natural gas into liquid form by using multi-stage refrigeration processes at liquefaction plants which reduces its volume, thus allowing for easy transportation to centres of demand.



Image courtesy of BG Group

After liquefaction, LNG is loaded onto specially designed ships built around insulated cargo tanks to keep the LNG in liquid state throughout the voyage.


Receiving and Distribution

An LNG receiving terminal comprises LNG storage tanks and regasification facilities that convert LNG back to its gaseous state by the application of heat, also known as vapourisation. Thereafter it is send into the pipeline system, for distribution to end-users.

The regasified LNG has a wide range of end users that spans across all sectors of the gas market from power generation and industrial processes to commercial and domestic application for heating and cooking.