Liquid Methane: Its a Cost Thing

Adjusting to a Liquid Natural Gas market analysis illustrates the trend of liquid methane,

It has been predicted that the LNG market will only be a competitor when there is surplus capacity in liquefaction plants and tanks. The high costs of LNG transportation currently make it difficult to move over long distances. In the last decade, advances in technology have seen a new design of LNG liquefaction facilities and tankers, resulting in significant cost reduction and the beginning of an attractive trade market.

Also in the last decade, global LNG trade has more than doubled while pipeline trade has risen by only one-third due to the advances in technology. Australia is currently one of the world’s largest LNG exporters. In 2009 Australia produced 6.9 million tonnes, 18.9 million tonnes in 2011 and an estimated production of 60 million tonnes in the year 2020.

LNG prices Vs. Jet Kerosene Prices

On a global scale, LNG is an advantageous resource for liquid methane production through its particularly low market price. Despite spot markets, the emerging industry has the capability to operate as the Kerosene market does – on a global scale. Reports from around the world
establish that the price of Kerosene is currently higher with no signs of reducing (IEA, 2013).LNG Prices listed in USD/MMBtu approx between $3-$13 per MMBt$3.10/gal equivalent to $22.66/MMBtu