The rise of LNG terminals: Optimizing costs and boosting sustainability with our Laby compressor system

Liquefied natural gas (LNG) is well positioned as a transitional fuel, thanks to its significantly lower CO₂ footprint compared to coal and oil. Today, geopolitical disruptions prompt governments to build LNG terminals to diversify their energy resources. Engineered for reliability and to meet demanding operating conditions, our Laby® compressor technology proves essential for safeguarding critical LNG supply chains worldwide.

With the rapid expansion of the global LNG market, demand will rise not only for overseas transport but also for LNG terminals to receive, store, and regasify LNG. From loading LNG on a carrier ship to compressing it through a pipeline, our compressors operate at crucial process points of LNG terminals.

In the past, LNG terminals were solely designed to send gas through pipelines to consumers. Today, with fluctuating demand, supply, and prices, LNG terminals must operate as flexible, high-performance distribution hubs – constantly prepared to receive, store, and dispatch varying volumes of LNG. The LNG distribution network encompasses multiple stages from liquefaction to regasification. Throughout this journey, compressors play a vital role by handling “boil-off gas”.

When LNG is stored at a terminal, it is kept at atmospheric pressure and cryogenic temperatures – temperatures below -160˚C. This is much lower than the surface temperature of the storage tank, causing the gas to continuously evaporate. This occurrence is called “boil-off gas” (BOG).

If BOG is not managed, it accumulates and must be vented or flared – leading to safety risks, financial loss and significant environmental impact due to emissions of 24 methane, the main component of LNG. By compressing BOG, the Laby compressor system enables LNG terminal operators to significantly reduce greenhouse gas emissions and achieve substantial cost savings by reinjecting evaporated gas into the distribution stream. This approach en sures efficient handling of BOG while sup porting sustainability goals.

Managing BOG is essential for both economic efficiency and environmental performance in the LNG supply chain. Two primary strategies are commonly employed: reliquefication and utilization as fuel.

Reliquefication recovers the gas by capturing, compressing, and condensing it back into liquid form before returning it to the main storage tank. Alternatively, BOG can be utilized as a fuel source for operational needs. At LNG terminals, BOG is typically compressed and used for on site operations, where the Laby Compressor plays a key role, or injected directly into the local gas pipeline network using an MSO compressor system like the Laby®-GI or the AP618 compressor.

Both methods aim to minimize losses, reduce emissions, and optimize overall LNG handling.

Typical boil-off gas handling process

1. LNG is stored at very low temperatures in insulated tanks.
2. A small portion of the LNG evaporates, creating boil-off gas (BOG).
3. BOG is collected and routed to the compressor system.
4. The gas is compressed using a Laby Compressor.
5. Compressed BOG is returned to storage or injected into the gas pipeline network.
6. Product losses and emissions are reduced.

The Laby Compressor is purpose-built and carries a unique set of specifications to suit demanding operating conditions at LNG terminals.

As BOG volumes fluctuate, handling it often requires frequent start-stop cycles, which place significant stress on the com pressor’s suction and discharge valves. The valves of our Laby Compressors are designed and manufactured in-house to precisely match operating conditions – extremely low temperatures and fluctuating flows. This ensures high reliability and compressor running time, reducing maintenance costs.

Even the slightest trace of oil contamination can compromise gas quality. The Laby Compressor overcomes this challenge with a unique labyrinth piston design and specialized low-temperature materials that enable completely oil-free and contactless compression. This design eliminates the need for lubrication, reduces wear, and ensures reliable operation across a wide temperature range – from cryogenic suction at -160°C up to discharge temperatures as high as +200°C. By removing the need for pre-heating and conditioning BOG, the Laby Compressor technology delivers flexibility and efficiency, making it the ideal solution for LNG terminals where purity and reliability are critical.

Laby Compressors play a critical role in LNG terminals by efficiently and reliably handling BOG. Their unique gas-tight design minimizes leakages, offers long intervals between overhauls, and delivers a proven track record for availability and reliability. Combined with low operating and maintenance costs over the compressor system’s lifetime, these features make Laby compressor systems a preferred choice for LNG terminals. Additionally, Laby compressor systems can handle cryogenic temperatures with ease, ensuring flexibility and maximum uptime in demanding LNG applications.

Valued at USD 9.0 bn in 2025, the LNG terminal market is expected to reach USD 33.1 bn in 2035¹. The top two countries leading the rise in LNG demand are China and India as they expand their LNG demand for industrial and manufacturing needs, as well as scaling down on coal to transition to cleaner energy. Countries fol lowing are Germany and the UK, where apart from energy-source diversification, the reason lies in enhancing their energy security.

As countries phase down on coal usage and shift to gas as a transitional fuel, LNG terminals have become critical strategic assets for energy security. Geopolitical disruptions are prompting governments and private operators to invest in building resilient energy infrastructure. As LNG demand grows, the need for robust compression solutions like the Laby compressor system will only accelerate.

¹ Source: LNG terminal market size and share forecast outlook 2025 to 2035, Future Market Insights