LNG by rail: Full steam ahead or chugging along?

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The transport of LNG by rail is still at an “embryonic” stage, but at a time of oversupply, this small-scale segment holds great potential as an alternative way of delivering maximised volumes of LNG to demand centres, while also offering considerable environmental and economic benefits, sources involved in the sector tell LNG Business Review.

One hurdle to its growth is the high cost of investment required, while in the US the transportation of LNG by rail has long been a barbed political issue. However, major names in gas and LNG, such as Gazprom and Engie, as well as smaller innovators such as New Fortress Energy, are becoming active in the segment and are pushing for its development.