As it is not feasible to build pipelines over the oceans natural gas is frozen to below -160C (-260F) becoming 600 times denser to be transported in insulated tanker ships.
There is no market for LNG contracts (yet) but LNG serves to integrate regional gas markets into a global one. Still there are huge price differentials between gas traded in Europe, US and Asia. This is partly due to LNG infrastructure is insufficient to provide physical liquidity and enable arbitrage.
With increasing gas price differences the market is inclined to build more LNG related infrastructure (tankers, liquefaction and regasification terminals). Currently numerous LNG projects are under way worldwide.
 Trade and Pricing
 Regional trends
- Due to new abundance of shale gas US is likely to become a net exporter of natural gas via LNG.
- Strong demand growth projected in China and India
- Price competition with cheaper coal
- Bridging energy before renewables (and nuclear)
- Consumers inclined to switch to gas due to lower volatility as the LTC s-curve protects from JCC or ICP spikes.
- Positioned as a core energy source in Basic Energy Plan
- Large growth potential
- Leadership position in the world LNG industry (40-year history)
- Negative nuclear sentiment