LNG is liquefied natural gas. When cooled under -162OC under the atmospheric conditions, natural gas liquefies and its volume decreases 600 times when it is compared to natural gas. Hence great amounts of natural gases can be kept under low pressure.

As a result, transportation of natural gas to the destinations where technically and economically it is not possible to transmit via pipelines becomes convenient.

LNG is more economic and more environmentalist than the other alternatives such as LPG, Fuel Oil and 1% sulphuric FO. LNG increases its cost advantage against the other fuels in the face of ever- increasing oil prices.