EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Distribution and Liquified Natural Gas (LNG)

Graphic illustration showing steps of process to get raw products from wells to markets with the distribution phase highlighted. Described in text below
Figure 6. Distribution

The final step in the logistics chain for natural gas is delivery to the burner tip. This can be accomplished by Local Distribution Companies (“gas companies”), or pipelines can deliver gas directly to connected end-users. We generally classify the end-users as utility, residential, commercial, and industrial.

The following lecture explains the function of Local Distribution Companies (LDCs) and presents various other natural gas end-user groups.

Key Learning Points for the Mini-Lecture: End-Users

While watching the Mini-Lecture, keep in mind the following key points:

  • Local Distribution Companies (LDCs) are gas utilities.
  • LDCs lower the pressure of the gas coming from the transmission pipelines and distribute it to end-users.
  • Electricity is produced by both public (utilities) and private companies.
  • Generation can be simple-cycle, combined cycle, or co-generation.
  • Natural gas is used in various commercial, residential, and industrial applications.
  • The use of Natural Gas Vehicles (NGVs) is growing.
EBF 301 Lesson 6 Natural Gas End Users
Click for transcript.

Insert transcript here

Tom Seng, John A. Dutton e-Education Institute

Optional Materials

EBF 301 Lesson 6 Liquified Natural Gas mini-lecture
Click for transcript.

Insert transcript here

Tom Seng, John A. Dutton e-Education Institute

Watch the following video, Liquefied Natural Gas (2:23)

Liquified Natural Gas (LNG)
Click for a transcript.

Insert transcript here

Source: Student Energy
US LNG import by country, 2016, Trinidad & Tobago 95%, Norway 4%, Canada 1%
The U.S. LNG import by country in 2016
Source: EIA
World LNG Estimated Landed Prices: Jan. 2018. See link below for text alternative
World LNG Estimated Landed Prices: January 2018
Click to expand to provide more information
Text Description
Country Price, $US/MMBtu
Cove Point $5.24
Altamira $10.18
Lake Charles $2.87
Bahia Blanca


Canaport $8.87
UK $7.18
Belgium $10.86
Spain $7.54
India $10.73
Korea $10.86
China $10.86
Source: FERC