LNG Companies and Their Impact on Industrial Growth

published Feb 28, 2023
2 min read

Liquefied natural gas (LNG) combines with renewable fuel sources such as wind and solar to create a hybrid fuel solution for the future. The new combo is gradually phasing out the centuries-old fossil fuels and crude oils as we edge closer to a carbon-free future.

LNG is natural gas that has been liquefied for easier transportation from its reserves to the end user, especially when the reserves and the user are on different planets. Before liquefaction, natural gas can only be transported via natural gas pipeline systems.

LNG is more environmentally sustainable because its CO2, NOx, and SO2 emissions are dramatically fewer than other fossil fuels. It also doesn’t produce ash, dust, smoke, or particulate matter when burning. LNG is also more stable, affordable, and reliable than renewable energy sources.

That is why industries around the world are betting on LNG to minimize their carbon footprint without hurting their profit margins.

GGR8JK LNG Carrier Mraweh, sailing down the river Elbe near Cuxhaven, Germany.

LNG Companies that are Spearheading Industrial Growth

i. Atlantic, Gulf & Pacific Company of Manila, Inc. (AG&P)

AG&P is leading the LNG revolution in India, the Philippines, and Asia at large. Today, the company’s concessions cover more than 8% of India. According to the CEO and chairman of AG&P, Joe Sigelman, the company is launching at least two new compressed natural gas (CNG) stations and over 80 kilometers of pipelines in India every week. Sigelman and his team are targeting to connect up to 3000 new homes with natural gas every day in 2023.

ii. Grain LNG, London

Grain LNG is the face of LNG importation in the UK. The company offers highly resilient, reliable, and world-class LNG infrastructure in London and its environs. Before 2030, the company will be storing more than 360,000 cubic meters and regasifying up to 4.2 million tons per annum (mtpa) of LNG.

iii. Cheniere Energy

As the leading U.S. LNG producer, Cheniere Energy is the pioneer of the LNG revolution in North America. The company operates two LNG facilities in North America. Through the two terminals, the company provides American industries with up to 45 mtpa of LNG.

How are LNG Companies Impacting Industrial Growth?

  1. Gas distribution

Liquefied gas companies provide the LNG tankers, cryogenic storage tanks, and pipeline systems needed to get this valuable product to the end user. That includes the pumping stations that are installed along the pipelines to enhance gas flow. Note that LNG has to be stored and transported at atmospheric pressure and a temperature of -161ºC.

In cases where LNG is imported from overseas, it has to be vaporized at the regasification plants before it’s pumped into the pipelines. LNG companies provide the regasification infrastructure. And because LNG is odorless, a unique smell is added to it at the regasification plants to easily detect leaks.

  1. Cryogenic power generation

LNG cryogenic power generation is achieved through the direct expansion of LNG upon vaporization. LNG companies generate power by pressurizing the LNG with a pump, heating it up with a heat exchanger to gasify it, and subsequently producing high-pressure gas. They then depressurize it using expander equipment to generate electric power. On a large scale, cryogenic power has the potential of revolutionizing industrialization in the world.

  1. Job creation

LNG companies are fueling industrialization through job creation. AG&P, for example, is driving the economy of Southeast Asia, stretching from India to the Philippines. Mr. Joe Sigelman believes that his company is changing the face of the region’s engineering and gas distribution sectors. The company focuses on downstream LNG import and distribution, bringing clean energy to Asia’s developing markets.

AG&P also employs almost 1,400 employees in the region, directly improving the health and welfare of local communities. Pumping revenue into the local economy in terms of direct taxes, salaries, employee benefits, and community empowerment programs is one way of fueling industrialization in Southeast Asia.

  1. Food industry

Besides being used as a cooking fuel in restaurants, LNG usage across different sectors of the economy reduces NOx and Sox. These ancillary benefits extend to the food production industry; LNG is making food production more convenient and environmentally friendly. When used to fuel farm machinery, LNG helps farmers cut down their budgets and maximize their profit margins. This will in the long run encourage more food production in the world.

  1. Transport

LNG accounts for about 4% of the USA’s transportation sector’s energy needs. Big transit trucks and other vehicles operating in North America now rely on LNG due to its clean-burning properties. Car manufacturers continue to produce more LNG-fueled vehicles. This will lead to a paradigm shift from diesel and LPG to LNG as the fuel of choice, especially for heavy-duty long-distance trucks. Long-distance vehicles prefer LNG best because it’s not as voluminous as its alternatives.

Final word

LNG companies are investing billions of dollars in building LNG infrastructure in the world. The infrastructure includes liquefaction facilities, CNG stations, and pipelines. And with the demand for LNG rising steadily, we can only expect more investments in the sector going forward. That’s why LNG has to be at the heart of the next industrial revolution!