Ivan Geliukh: How LNG transportation affects Europe’s energy security
This column by Chairman of the Management Board at D.Trading, Ivan Geliukh, is dedicated to the technology of liquefied natural gas (LNG) transportation and its impact on Europe’s energy security. Today, Ivan Geliukh explains how LNG enables energy diversification, bolstering European countries’ resilience against energy challenges.
Liquefied natural gas (LNG) significantly impacts the global energy system, especially in countries without pipeline access. Advanced technologies make it possible to transport large volumes of LNG across oceans from various continents, making it an indispensable energy source for many regions.
In recent years, demand for LNG has risen considerably due to the need for diversified energy supplies, particularly in Europe and Asia. But how do the liquefaction and transportation processes work, and what impact do they have on Europe’s energy system?
Natural gas liquefaction and transportation
Major LNG suppliers include Qatar, the U.S., and Australia. There, at specialized facilities, often located near large gas fields, natural gas is initially cooled to minus 163°C, which reduces its volume by 600 times and turns it into a liquid.
After liquefaction, the gas is stored in special tanks, until it is loaded onto LNG carriers equipped to maintain low temperatures to preserve the gas's liquefied state during long journeys.
There are two primary types of LNG tanks – membrane and spherical (Moss tanks). Each has advantages in terms of safety and efficiency. During transportation, it's critical to control the pressure and temperature of the gas to prevent evaporation. Some modern LNG ships even use small amounts of evaporated gas as fuel, enhancing their energy efficiency.
A major benefit of transporting liquefied gas is the ability to deliver it over vast distances, providing supply flexibility and reducing dependence on individual regional suppliers.
However, there are challenges. The high costs of developing and maintaining LNG infrastructure for liquefaction, transportation, and storage present significant barriers for many countries. Additionally, LNG transport requires continuous monitoring of temperature and pressure, as even slight fluctuations can lead to partial gas evaporation.
And, of course, there is the aspect of safety. Transporting cryogenic substances requires strict procedures and systems to prevent leaks and accidents.
LNG terminals: processing and storage
Upon arrival at LNG terminals, the liquefied natural gas must be returned to its gaseous state through a process called regasification, which takes place at specialized terminals capable of receiving LNG. These terminals are located in various countries, including those in Europe, Asia, and North America.
The LNG is unloaded from carriers through cryogenic pumps and transferred to storage tanks, where it is kept in its liquefied state until regasification. Once restored to its original state, the gas is delivered to national pipeline systems for further use.
The impact of LNG transportation on Europe’s energy security
The transportation of liquefied natural gas (LNG) plays a key role in strengthening Europe’s energy security. After the reduction of pipeline gas supplies from Russia, Europe has actively shifted to LNG imports to meet its energy needs. In 2023, LNG accounted for approximately 43% of the EU’s total gas imports, compared to 26% in 2021. This shift helped offset the loss of Russian gas supplies and reduce dependence on regional routes.
Overall, Europe imports over 130 billion cubic meters of LNG annually, accounting for about 25-30% of the region’s total natural gas consumption. This import level not only helps the EU balance its energy needs but also provides diversification of sources, which enhances flexibility in the events of energy crises or supply disruptions.
The future of LNG
One of the main development directions involves increasing the number of LNG terminals and liquefaction plants in countries of origin, especially the U.S., Qatar, and Australia, to considerably expand their export capabilities.
LNG demand is expected to grow by more than 50% by 2040, particularly in Asia, where countries like China and India are heavily investing in developing their own LNG reception infrastructure.
Additionally, innovations in transportation systems are continually improving. Larger LNG carriers, new cooling systems, and the reuse of evaporated gas as fuel make transportation more efficient and cost-effective.
One of the promising technologies in this development is floating regasification terminals (FSRUs), which enable quicker and more cost-effective LNG delivery to end consumers.
At the same time, efforts to reduce the carbon footprint of LNG are intensifying. Companies and governments are investing in technologies to cut emissions during LNG production, transportation, and use, contributing to global climate goals. Ultimately, these advances offer hope for continued growth in LNG technology worldwide.