CPABC Industry Update Summer 2014 | Page 14

An Overview of the LNG by Christian Waldegrave G lobal demand for natural gas is rising. According to the International Energy Agency, growth in demand for natural gas is expected to outpace that of any other fuel over the next 20 years. The growing importance of natural gas is due to its widespread availability, competitive supply costs, and environmental advantages in comparison with other page 14 | I N D U S T R Y U P D AT E fossil fuels. As a result, natural gas is expected to gradually displace coal as the primary fuel used for power generation and in industry over the coming years. Natural gas can be transported in two ways. First, it can be moved in its gaseous state via pipeline. However, for transport over longer distances, it is more cost effective to liquefy the gas into liquefied natural gas (LNG) by