The Power in the Flames: Modular LNG’s Rising Role

Modular LNG transforms flared gas into power, proving waste can fuel progress and cut emissions

20 Feb 2026

A technology long seen as marginal is being used to address one of the oil industry’s most visible inefficiencies. In Argentina’s Mendoza province, a modular liquefied natural gas (LNG) project is converting associated gas that would otherwise be flared into electricity, offering a commercial use for stranded resources while lowering emissions.

The La Mora project, implemented between 2022 and 2023, relies on mobile liquefaction units supplied by Galileo Technologies. Nine factory-built modules have been installed at the oilfield to process gas produced alongside crude oil. In areas with limited pipeline access, such gas is often burned off. At La Mora, the system converts about 120 metric tonnes a day into LNG.

The liquefied gas is then transported by truck to the nearby Methax power plant, where it supports roughly 40 megawatts of generation capacity. Instead of building permanent pipelines, the project uses what the industry describes as a “virtual pipeline”, moving LNG in cryogenic tankers to end users.

Supporters argue that the approach can be replicated in other oilfields where pipeline construction is not economic. By installing modular units directly at production sites, operators can shorten development timelines and avoid the capital intensity of large-scale liquefaction plants. The model is designed to bring projects online more quickly than conventional infrastructure, which can take years to permit and build.

The project also aligns with broader efforts to reduce routine flaring, a practice that wastes gas and contributes to carbon emissions. Governments and investors have placed greater weight on measurable emissions reductions and resource efficiency, increasing scrutiny of oil producers’ environmental performance.

Challenges remain. Small-scale LNG projects tend to face higher per-unit costs than large export terminals, and transport logistics can affect competitiveness. Regulatory frameworks, including rules on gas pricing and emissions, will shape whether similar schemes are adopted elsewhere.

Even so, La Mora illustrates how environmental and commercial objectives can converge in specific settings. For producers operating in remote regions, modular LNG offers a way to monetise gas that would otherwise be wasted, while contributing to incremental reductions in flaring.