Liquefied Natural Gas (LNG) is a concept and a physical state of natural gas (predominantly methane) that has been cooled to a liquid for efficient transport and storage.
The concept originated from the problem of transporting natural gas over long distances, especially across oceans, where pipelines are not feasible. The first recorded experiment to liquefy natural gas was conducted in 1917 by William Franklin in the U.S., and the first commercial LNG plant was built in West Virginia in the 1940s. The global LNG trade began in the 1970s, with Asian countries accounting for the largest share of imports.
The mechanism of LNG involves a three-step process: first, the natural gas is purified by removing impurities like water and carbon dioxide. Second, it is cooled to approximately -162°C (-260°F) to condense it into a liquid, a process called liquefaction. This cooling reduces the volume of the gas by about 600 times, making it practical for non-pressurized storage and transport. Third, the LNG is transported in specialized, double-hulled cryogenic tankers, and upon reaching its destination, it is offloaded and returned to its gaseous state, or regasified, at import terminals before being distributed via pipelines.
LNG connects directly to India's energy policy, as the government has set a goal to increase the share of natural gas in the energy mix from 6% to 15% by 2030. This makes LNG a critical component for enhancing energy security and providing a lower-carbon alternative to coal, as it produces about 40% fewer greenhouse gas emissions than coal for electricity generation. Key infrastructure includes LNG regasification terminals along the Western coast in states like Gujarat and Maharashtra. The fertilizer sector has accounted for almost all of India's LNG demand growth since FY2016, often supported by large fiscal subsidies. There have been no recent changes to the fundamental concept, but the infrastructure and policy focus on LNG have been significantly expanded to support India's energy transition.