Today, 90% of all NG is delivered through pipelines or as LNG. Pipelines are practical for transport of NG over land, but typically are not viable solutions for extended transport through the oceans. This necessitated the development of Liquefied NG (LNG) to accomplish long distance Ocean Transport.
Pipelines deliver more than 95% of all NG within domestic markets, and approximately 70% of all exported gas. LNG takes up the nearly all of the balance of NG exports. As below NG exports account for over 30% of world supply, and most of this is delivered through pipelines.
However, the gas transportation infrastructure that is required by pipeline and LNG has necessitated multi-billion-dollar investments in complex, long-term engineering projects, and generally only the largest NG resources are therefore developed with LNG as the means to bring the gas to market.
One of the fundamental principles that enable the PEL business model is that limitations in the two primary NG commercialization technologies, pipeline NG and LNG, have resulted in numerous NG sources being deemed non-commercial, while simultaneously precluding the majority of the world's population from being viable NG customers.