LNG - Liquefied Natural Gas

What is Liquefied natural gas?

Liquefied natural gas (LNG) is natural gas chilled to -161 degrees Celsius so that it becomes a liquid. Once it has been liquefied, it shrinks to 1/600 the space of natural gas, allowing it to be transported in purpose-built ships. Australia has four operating LNG projects. 

This is already creating thousands of jobs and will deliver major export income and tax revenue for Australia, as well as cleaner energy for the world.

Benefits of LNG

LNG projects are driving an unprecedented level of investment in Australia, while also delivering reliable and cleaner energy to Asia. Australia has several LNG projects under development that will cost industry about $200 billion to build – an investment of more than $1,200 per second over the next five years. 

Once these LNG projects are operating, exports are likely to increase from 24 million tonnes per annum to 85 million tonnes per annum – making Australia the number one LNG exporter in the world. This will also significantly increase the LNG export revenue flowing to Australia, which stood at $11.1 billion in 2011.

More LNG projects also mean more income tax, company tax and resource royalties. In 2011-12, the gas industry paid $8.8 billion in taxes and royalties, which is expected to reach $12.8 billion by 2020, enough to build six new major state-of-the-art hospitals.

During this investment phase, it is estimated that the industry will create about 100,000 jobs across the Australian economy. All while producing an energy source that delivers half of the emissions of black coal and 70% fewer emissions than brown coal when used to generate electricity.

How is LNG produced?

How is LNG produced image


LNG is natural gas chilled to -161 degrees Celsius.
LNG is responsible for 100,000 jobs and $200 billion worth of investment in Australia.

Is LNG safe?

LNG has been safely transported around the world for decades, giving millions of people access to a cleaner energy source.

LNG does not contain any oxygen, which is needed for combustion, so it won’t burn. It’s not stored or transported under pressure and is not explosive. Evaporated LNG does not pollute the air and leaves no residue on land or in water.

Because LNG weighs less than water, it will float if spilled and then evaporate quickly. 

LNG is transported by large double-hulled ships. The modern LNG shipping industry has had more than 40,000 safe voyages over the past four decades.