Squeezing and cooling gas until it becomes a liquid, and then shipping it by tanker, is inherently costlier than sending it down a pipeline. But 50 years since the first shipment left Algeria, liquefied natural gas (lng) is no longer exotic, complicated or marginal. For the past two years the global lng trade has been in a flat spot, with little new supply. But on May 25th Exxon Mobil said it had shipped its first cargo from a $19 billion project in Papua New Guinea (pictured on the next page), the first in a wave of new lng supplies that are about to come to market. Projects under way mean that by 2018 over a third more lng capacity will come onstream-the equivalent of China's current consumption of lng and piped gas combined. By 2025 capacity could double, reckons ey, a consulting firm. Australia has seven projects under construction, which will together supply 80 billion cubic metres (bcm) a year, which is more than Germany's entire current consumption of gas. Australia should become the largest lng exporter after Qatar by 2016.
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