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Natural gas is becoming one of the most important resources of energy with its share in the world consumption

expected to increase as much as 50% by 2020. Currently, natural gas is transported to the markets by pipelines and as
liquefied natural gas (LNG). Transporting the natural gas by pipelines is convenient and economical for onshore purpose.

For offshore transport of natural gas, pipelines become challenging as the water depth and the transporting distance

increase. LNG, an effective mean of transporting gas for long distances overseas, constitutes 25% of the world
gas movement. But LNG projects require large investments along with substantial natural gas reserves and are

economically viable for distances longer than 3000 miles.

Natural gas is becoming one of the most important resources of energy with its share in the world consumption

expected to increase as much as 50% by 2020. Currently, natural gas is transported to the markets by pipelines and as
liquefied natural gas (LNG). Transporting the natural gas by pipelines is convenient and economical for onshore purpose.

For offshore transport of natural gas, pipelines become challenging as the water depth and the transporting distance

increase. LNG, an effective mean of transporting gas for long distances overseas, constitutes 25% of the world
gas movement. But LNG projects require large investments along with substantial natural gas reserves and are

economically viable for distances longer than 3000 miles.

Compressed natural gas (CNG) technology provides an effective way for shorter-distance transport of the gas. The
technology is aimed at monetizing offshore reserves, which cannot be produced because of unavailability of pipeline or

because the LNG option is very costly. Technically the technology is easy to deploy with less requirements for facilities

and infrastructure. Economically for distances up to 2500 miles CNG can transport natural gas at prices ranging from

$0.93 to $2.23 per MMBTU compared to LNG, which can cost anywhere from $1.5 to $2.5 per MMBTU depending on

the actual distance. At distances above 2500 miles the cost of delivering gas as CNG becomes essentially the same as the

LNG whereas the disparity in the volumes of gas transported by the respective technologies and market demands play the
deciding role for using the technology.

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