Liquefied Natural Gas (LNG)

Fact Sheet

Liquefied Natural Gas (LNG)


Almost all (84 percent) of the natural gas consumed in the United States is produced in the United States. Thirteen percent of U.S. consumption comes from Canada. Three percent of the natural gas consumed in the United States is imported as liquefied natural gas (LNG).

The cryogenic process of liquefying natural gas reduces its volume by 600 times. That is like shrinking the volume of a 17 beach ball down to a ping-pong ball. Liquefying natural gas makes transporting it by ship economical, and costs continue to decline as worldwide LNG shipping capacity grows. Large natural gas reserves exist worldwide that can only be brought to market in liquefied form. LNG comes from an increasingly diverse group of countries, including Algeria, Australia, Qatar, Trinidad and Tobago and others. LNG imports account for three percent (600 billion cubic feet) of U.S. natural gas consumption and are expected to grow throughout the decade.

Supporters of LNG, including former Federal Reserve Board Chairman Alan Greenspan, indicate that greater imports of natural gas can help ameliorate the impact of high, volatile natural gas prices. Others point to concerns over safety and terrorism, and question moving toward a greater reliance on imports despite the existence of abundant domestic natural gas reserves.

AGA Viewpoint

AGA supports increased imports of LNG as one solution among many for increasing supplies of natural gas. The availability of a diverse supply portfolio, including LNG, will enhance reliability and stabilize prices to consumers. Increased imports of LNG can have a positive near-term impact on the marketplace. AGA will continue to partner with the Center for LNG (CLNG) on programs to promote public education of LNG and to work with federal government policy makers to facilitate the growth of LNG imports.

Additional Information: Center for LNG (

AGA Contact: Tom Moskitis, (202) 824-7031,