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LNG, or liquefied natural gas, consists mostly of methane and is cooled to approximately -124 degrees Celsius so that it can be transported from countries that have more natural gas than they need, to countries that use more natural gas than they produce.

In its liquefied state, natural gas takes up 1/600th of the space, making it much easier to ship and store when pipeline transport is not feasible.

Australia is a major exporter of LNG, with considerable potential for further development of the industry, based on its abundant resources of natural gas. Australia is now the third largest LNG producer in the Asia–Pacific region and the fourth largest LNG producer in the world.

Currently, there are two operating LNG processing plants in Australia, the North West Shelf (NWS) LNG Project in Western Australia and the Darwin LNG plant. There are also several other Australian LNG projects at various stages of development.

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