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Show Lf'G may Replace Oil As Fuel In Future Liquefied natural gas which is now generally, referred to as LNG could well develop into one of the outstanding factors in the future fu-ture of energy requirements. OF SPECIAL significance at the present time is the fact that LNG .-could help in replacing oil as fuel and thus bring about a reduction in the imports of crude oil from OPEC and other important j world sources. For a long time, gas in the y oil fields was either "flared" or reinjected since immediate economic use was not always feasible or profitable. NOW THAT energy prices are showing dramatic gains and shortfalls are expected in j future supplies of energy producers, natural gas has a I ready market as a clean- burning substitute for coal, J oil, and nuclear power. i Today, reserves of natural gas with recoverable volume throughout the world are es timated to be, in numbers, the equivalent of two-thirds of all known crude oil sources. ACTUALLY, LNG, per se, is not a fuel but rather a gas in a processed form adaptable for shipment by ocean transport trans-port from remote and overseas over-seas locations. Principal shipments of LNG are from Algeria to Europe, with relatively smaller quantities transmitted transmit-ted to the U.S. Indonesia is a major provider of LNG for Japan, while a small operation opera-tion in Alaska also ships to that island nation. NATURAL GAS liquefaction liquefac-tion is achieved by way of a process similar to that used in a regular household refrigerator. It involves heat transfer, with a lowering of the temperature until the gas becomes a liquid. This takes place at about minus 260 degrees Fahrenheit. This extreme ex-treme cold calls for especially resistant materials in terms of tanks and piping. Since ordinary steel becomes brittle at low temperatures, the hundreds of miles of pipe in use must be made of sturdier metals such as nickel steels and aluminum alloys. Another aid to shipping is the fact that liquefied gas takes up only about one six-hundredth of the space needed by the gaseous element itself. UPON REACHING its destination, des-tination, LNG is stored at receiving terminals as carefully located and controlled con-trolled as the liquefaction plants, though the tank farms are usually more extensive to adjust to fluctuating demand. From such centers the product is piped to consumer outlets. In its LNG form, it will not burn and is considered safe, although a rupture in a facility tank or a pipeline could create a critical problem. Because of the potential po-tential danger, plant siting is considered a vital aspect. Presently, LNG from Algeria, is received here at terminals in Savannah, Ga. and Cove Point, Md. PROVEN RESERVES of domestic natural gas have been estimated as being on the decline for over a decade. Until there are sufficient incentives in-centives and a suitable technology tech-nology for extracting gas commercially from certain promising U.S. regions, imports im-ports of LNG from abroad may prove to be a growing and steadily more important supplement in the spectrum of energy sources. For investors interested in participating in this interesting interest-ing field, the Research Department of Babson's Reports recommends the purchase of the common stock of Tenneco on the New York Stock Exchange. TENNECO HAS evolved from a natural gas pipeline operator into an energy-oriented energy-oriented conglomerate. Most of its revenues last year (1977) came from natural gas pipelines, but it should be noted that this was followed closely by integrated oil and gas operations. This is a favorable time to consider Tenneco because of its appreciation possibilities and its recently increased dividend. |