5. Worldwide lng technology

The introduction of LNG dates back in 19th century when the first practical compressor and refrigeration machine was engineered in Munich, Germany, in 1873 [44] and after that LNG gains foothold in the energy market. Currently, there are 26 liquefaction and 60 re-gasification terminals in different countries. In addition to these existing terminals, there are many liquefaction and re-gasification terminal projects that have been either proposed or are under construction all around the world [45].

Today, Qatar has achieved a major production milestone of 77 million tonnes per annum of LNG, confirming the country’s position as the world’s leading producer and supplier of liquefied natural gas (LNG). Qatar’s natural gas liquefaction facilities and related industries are located in Ras Laffan industrial city, site of the world’s largest LNG exports of more than 31 million metric tons per year. Qatar’s heavy industrial base, located in Messaged, includes a refinery with 140,000 barrels per day (bpd) capacity, a fertilizer plant for urea and ammonia, a steel plant, and a petrochemical plant, and several new petrochemical plants are planned to build in the coming years. All these established and planned industries are natural gas based. Most are joint ventures between US, European, and Japanese firms and the state-owned Qatar Petroleum (QP). The US is the major equipment supplier for Qatar’s oil and gas industry, and US companies are playing a major role in the development of the oil and gas sector and petrochemicals [46].

PETRONAS is also playing a major role in proliferation of LNG production, distribution and utilization. The PETRONAS LNG complex in Bintulu, Malaysia, is the world’s second largest integrated LNG facility at a single location with a combined production capacity of about 23 MMT per annum and LNG is being supplied from this installation to South Korea [16]. By the end of 2008 Qatar (30 MMT), Malaysia (23 MMT) and Indonesia (20 MMT) were major LNG exporters and the three biggest LNG importers were Japan (70 MMT), South Korea (30 MMT) and Spain (24 MMT) as shown in Fig. 3 and Fig. 4[47].

Fig. 3. 

World’s major LNG exporting countries.

Source: Global LNG Info.

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The world’s natural gas consumption is increasing and the history of natural gas indicates that the consumption of natural gas was 2.5% more in 2008 as compared to 2007 and the contribution of LNG to this consumption was 7%. Further, the contribution of LNG to natural gas consumption is projected to increase by 6.7% per year from 2005 to 2020 [48]. At the same time, the production of natural gas is also increasing continuously to meet this growing global energy demand and the production of LNG was found 3.8% more in year 2008 in comparison to 2007 [18].

Further, natural gas production is expected to grow more than 50% by 2030 [49] when it will overtake coal as the second-biggest global fuel source. Most of the natural gas demand is expected from the power generation [40], transportation [11], industrial and commercial sectors, attracted by the fact that gas is not only an efficient fuel source but also produces lower emissions than oil or coal. LNG is projected to be a significant component of the overall natural supply portfolio. Global natural gas demand in terms of LNG is reported in Fig. 5. The above facts reflect that LNG technology is expanding and it will be helpful in diversifying the natural gas.

Fig. 4. 

World’s major LNG importing countries.

Source: Global LNG Info.

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6. Worldwide potential of natural gas vis-a-vis LNG

The natural gas industries have a great potential to supply natural gas because of the availability of worldwide natural gas resources and the successful conversion of natural gas into an easily transportable LNG. The major sources of natural gas are fossil natural gas, town gas, biogas and hydrates.

Fig. 5. 

Schematic representation of growing global LNG demand.

Source: Cedigaz, BP, Shell.

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6.1. Fossil natural gas

Natural gas is commercially produced from oil and natural gas fields. Gas produced from oil wells is called associated gas. The natural gas industry is producing gas from increasingly more challenging resource types: sour gas [50], tight gas, shale gas [51] and coal bed methane gas [52]. The world’s total natural gas reserves are 6254.364 Tcf located in different regions/countries as reported in Table 3[53]. Russia has the world’s largest natural reserves hence; it is the largest producer of natural gas, through the Gazprom Company. The world’s second largest gas field is Qatar’s offshore North Field, estimated to have 891 Tcf[46] of gas in place—enough to last more than 200 years at optimum production levels. The next largest natural gas field is the South Pars Gas Field in Iranian waters in the Persian Gulf connected to Qatar’s North Field [54]. Because natural gas is not a pure product, when non-associated gas is extracted from a field under supercritical (pressure/temperature) conditions, it may partially condense upon isothermal depressurizing—an effect called retrograde condensation. The liquids thus formed may get trapped by depositing in the pores of the gas reservoir. One method to deal with this problem is to re-inject dried gas free of condensate to maintain the underground pressure and to allow re-evaporation and extraction of condensates.

Table 3.

World’s proven gas reserves by region.

Country/region	Amount of natural gas [at end 2009] (Trillion cubic feet)
North America	308.794
Central & South America	266.541
Europe	169.086
Middle East	2591.653
Africa	494.078
Asia Pacific	430.412

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