The Economics of Gas Transportation by Pipeline and LNG, published by the International Energy Agency, examines the economic factors influencing the transportation of natural gas through pipelines and liquefied natural gas (LNG) systems. The study compares the cost structures, investment requirements, and operational characteristics of both transport options. Pipeline transport is typically more economical for large volumes over shorter to medium distances, while LNG becomes competitive for long-distance or overseas gas trade where pipelines are not feasible. The analysis highlights major cost components including infrastructure construction, liquefaction and regasification facilities, shipping, and operating expenses. It also evaluates how market demand, distance, scale, and energy prices influence transport decisions. The report emphasizes the importance of cost-benefit analysis and long-term demand projections when selecting between pipeline and LNG transport, helping policymakers and energy companies identify the most efficient and financially viable gas transportation solutions.
