What is Liquefied natural gas (LNG)?
Natural gas that has been cooled down to a liquid form is known as liquefied natural gas (LNG). The cooling process shrinks the volume of natural gas making it easier and safer to store and ship overseas.
Natural gas is a fossil fuel which has long been a component of the UK’s energy mix. It is utilised for a variety of purposes, including cooking, heating, and transportation. However, with it being a limited resource combined with the push for low-carbon energy sources, there is a time limit on how long we can depend on it.
LNG is considered to be cleaner than other natural gases, and so it may be well placed to help the UK transition to net zero, as explained here by National Grid.
Liquefied natural gas and its importance over the winter
In our latest video podcast, Senior Analyst, Sam Peek and Lead Analyst, Joe Camish discuss Liquefied natural gas and its importance over the winter. They discuss:
- The significant European and UK uptake in LNG as a replacement for the shortfall of Russian natural gas this winter
- The influence of wider geopolitical issues that have prompted a pivot in favour of LNG as a supply side balancer
- Expectations for the future of LNG prices into 2023 and how the UK and European gas markets could be preparing to make LNG a long-term proposition to manage our gas demand needs
You can also listen to it via our podcast here.
Read our expert blogs on gas prices, LNG and more through the blog links below. Also, find out more about our weekly news bulletin here which covers LNG and other changes in the wholesale market.