Liquefied Natural Gas: What to Know & Why It’s Important

With a changing energy landscape and the rise of artificial intelligence (AI), power is in high demand. 

Consider the rise of AI alone. AI applications require large amounts of computing power. The International Energy Agency (IEA) estimates in its 2024 electricity analysis and forecast that search engines could see a 10-times increase in electricity demand when they utilize AI, compared to the average electricity use of an internet search engine request.  

Additionally, more data centers will need to be built around the world to power future AI applications. Ensuring data centers have reliable power sources to prevent downtime, or disruptions, is crucial – especially when US data center electricity demand could double by 2030, consuming up to nine percent of the country's electricity generation, according to the Electric Power Research Institute. 

Even as the global energy transition accelerates the use of renewables like wind and solar power, natural gas, which has a lower carbon intensity compared to most other fossil fuels, can serve as a backup power source, according to the IEA.  

Natural Gas and the Role of LNG 

LNG, with its cleaner burning properties and flexibility, has the potential to help be a bridge fuel, facilitating the transition from conventional fossil fuels to renewable energy sources. Its versatility allows nations to address immediate energy needs. 

Getting natural gas to communities, businesses and operations around the world is key. To store and transport natural gas, it needs to be converted to its liquefied state, known as liquefied natural gas (LNG). Special technologies and solutions are needed to produce LNG, and the LNG sector is on the rise. Industry research from Deloitte shows that the LNG market has quadrupled over the last 20 years and is expected to double over the next two decades, driven by demand in end markets like power and data centers.  

Investing in the Future of LNG Innovation 

Honeywell announced in September that its acquisition of Air Products’ LNG process technology and equipment business has been finalized. Here’s what to know: 

What is LNG technology and equipment? 

LNG process technology and equipment is the heart of an LNG production plant. The technology unlocks the value of natural gas by liquefying it, occupying 1/600th the volume of gas and making it possible to economically ship globally. This allows countries to import gas from regions with abundant supplies and help diversify their energy sources.  

What’s next for LNG innovation at Honeywell? 

The acquisition of Air Products’ LNG process technology and equipment business enables Honeywell to take significant steps toward creating a comprehensive suite of technologies. This includes synergizing between its existing natural gas pre-treatment and state-of-the-art liquefaction, utilizing automation and digital technologies under its Experion and Honeywell Forge platforms. This future full-service solution will be designed to help enable more efficient, reliable and optimized management of natural gas assets, with greater efficiency and end-to-end accountability.  

Read more about our acquisition of Air Products’ LNG process technology and equipment business here.