LNG History

Until well into the 20th century, natural gas was considered a nuisance and a by-product of crude oil extraction.

Among the first companies to recognise the potential of gas, the Ohio Company discovered large reservoirs of gas in remote areas of Wyoming in 1915. As early as 1917, the liquefaction method was proven and in 1920 they pioneered the development of natural gas pipelines which brought the gas to consumers.

In the 1920′s Frank Phillips, founder of Phillips Petroleum, recognised the importance of natural gas as a source of valuable liquid by-products such as propane and butane.

Based on experiments begun in 1937, the first large-scale cryogenic liquefaction project began in 1941 in Cleveland, Ohio. The first ship transport of LNG began in 1954 on an experimental basis with shipments from Louisiana to Canvey Island (UK) where the first LNG import terminal was established by British Gas. The first large-scale trade began in 1964 when British Gas began importing by ship from Algeria.

This first commercial base-load international LNG project was for 40 billion cubic feet (bcf) per annum over a 15-year contract period. This was followed by ventures between Algeria and France in 1965 and in Alaska and Japan in 1969.