LNG - Frozen Alternative Energy Source!

LNG (liquefied natural gas) , technically, might not, by most experts standards, be considered an alternative energy source since it is really frozen natural gas. However, by my definition of an alternative energy source being any energy source that replaces or reduces the demand for crude oil, natural gas, or coal, LNG is an alternative energy source. Much of the natural gas used in producing LNG is obtained from natural gas deposits for which there is no local market ("stranded natural gas") and transported to hot markets, e.g., U.S. and Japan.

Significant global trade in LNG has developed and as the U.S. eventually runs out of domestic oil and natural gas, imported LNG will play an increasing role in supplying the U.S. with an "alternative energy supply." Although only a few LNG terminals have been constructed in the U.S. so far, a number of others are planned.

Unfortunately, as with oil, the largest natural gas deposits are in the Middle East, notably Iran and Qatar. Qatar, a small country on the Persian Gulf, is rumored to have truly massive deposits of natural gas just offshore. Their small population has little need for the gas so look for Qatar to be a major player in the LNG field. Fortunately, Qatar and the U.S. are very friendly. Not so with Iran which has very large natural gas fields. Iran is also looking to become a major exporter of LNG. Saudi Arabia and the Soviet Union are two other countries with large natural gas deposits. They are also moving into the LNG export business.

LNG is transported via special vessels designed to handle the frozen natural gas. Most LNG will be offloaded into offshore LNG terminals, heated back to the gaseous form, and send by existing gas piplines throughout the U.S.

LNG is an alternative energy source whose time has come!

(Update: The recent discovery that massive deposits of natural gas is present in U.S. shale formations and can be economically extracted, may alter our position in the LNG market. Conceivable, the U.S. may now have large enough reserves of natural gas that we could become a major exporter of natural gas in the form of LNG. What a change that would be!)