Sometimes investors tell me that #LNG is complicated. Liquefied natural gas (LNG) is the same gas that many of us use to heat our homes and cook our dinners. It’s the gas we use in power generation, transportation, chemicals and agriculture. It’s the same gas that is being used to de-carbonize the global energy system as a reliable partner to the rapid, and necessary, build out of renewables. Over the coming years, most likely decades, gas will play a critical role in replacing coal in power stations. It will replace heavy fuel oil in industry and transportation and it will replace charcoal and wood for cooking, particularly in the countries where Kosmos Energy has operations, and beyond. LNG is just gas (methane or CH4 to be precise) cooled to around minus 162oC (-260oF), which turns it into liquid. This makes it easier to transport on one of the ~700 LNG tankers in operation around the globe. In 2022, over 40 countries imported LNG (5x more than in the 1990’s) and that number is set to grow further as more countries look to #diversify their energy sources and enhance their #energysecurity. The clear benefit of LNG over pipeline gas is #flexibility. In liquid form, you can send the gas to wherever the demand is. Buyers can source LNG from most regions of the world (Americas, Africa, Australasia, Middle East, SE Asia etc) without dependence on one sole supplier. Sellers can supply a diverse and growing number of customers. LNG is just cold gas (not to be confused with the hot air my wife keeps telling me I am full of…) #gas #lng #flexibility #diversify #security #energytransition
