Liquified Natural Gas Q&A

Q: What is lIquified natural gas (LNG)?
A: LNG is a natural gas that has been converted from its gaseous state into a liquid.

Q: How is this done?
A: First, impurities are removed from the gas, leaving mostly methane. It is then cooled to about minus 260 degrees, becoming a liquid in the process.

Q: What happens to LNG during that process?
A: Several things. Most importantly from a handling standpoint, it shrinks to 1/600th the volume of natural gas in its gaseous state. That makes it very transportable, whether by ship overseas or by truck on land, between places where no pipelines exist.

Q: Is this a new process?
A: No. Experiments on the various states of gases have been conducted for several hundreds of years, and the ability to liquefy large amounts of natural gas was developed about a century ago. However, the use of LNG has increased rapidly in recent years.

Q: Is LNG safe?
A: Yes, LNG is not stored under pressure and is not flammable or explosive in its liquid state. It becomes combustible when converted back to its gaseous state for use.

Q: Who uses LNG?
A: LNG is used for all the same purposes – residential, commercial and industrial – as other fuels.

Q: Does that include oil and gas exploration companies?
A: Yes, because LNG can be transported cheaply and stored safely, it is attractive to oil exploration companies, which need power to run their drilling rigs in remote locations.

Q: Is LNG more costly for drilling companies to use?
A: LNG is cheaper than some other fuels. There is an initial cost associated with converting rigs and training employees to run LNG, which can be offset over the lifetime of the operation.

Q: Is there an environmental benefit to LNG?
A: Yes, LNG releases up to 30 percent less carbon monoxide and other greenhouse gases into the atmosphere than other fuels. Using LNG also reduces the amount of truck traffic around rigs, resulting in less disruption to the environment.

Q: Why is Slawson Companies using LNG?
A: Slawson Companies believes that using LNG to power drilling rigs makes sense from both environmental and economic perspectives. Slawson recently started using liquified natural gas from North Dakota’s first LNG production facility to run its rigs. In addition to reducing greenhouse gas emissions and helping the local economy, developing the LNG industry reduces America’s dependence on foreign fuel sources.