What is LNG?

LNG Composition
Nitrogen N 0.0% 1.3%
Butane C4 0.0% 2.5%
Propane C3 0.0% 4.0%
Ethane C2 0.0% 14.0%
Methane C1 83.0% 99.8%
Low High
Composition Range
Volume Reduction: 1/600
Pressure: 1 atmosphere
Temperature: -259 degrees F -161degrees C

LNG is Not…
• Compressed Natural Gas (CNG)
• Natural Gas Liquids (NGL)
• Liquefied Petroleum Gas (LPG)
• Gas to Liquids (GTL)

LNG Markets
• Preferred option for long distance natural gas
transportation
• Supply peak shaving
• Natural gas distribution system flexibility
• Seasonal gas storage
• Alternative motor fuel to diesel
• Natural gas service to remote areas

LNG vs. Natural Gas
• LNG Competes with:
! Pipeline Delivered Natural Gas
! Diesel
! Heating Oil
! Electricity
! Coal
• In a regulated market LNG should be at price parity with
other commodities
• In an unregulated market, LNG must compete on its own
merit, notably cost
• Dependant Factor
! LNG growth tied to natural gas demand
• Independent Factor
! LNG must be cost competitive to natural gas

LNG Value Chain
• Exploration and Production
• Liquefaction
• Shipping
• Storage and Re-gasification