A method for producing liquid natural gas (LNG) includes the following steps. Compressor stations forming part of existing natural-gas distribution network are identified. Compressor stations that are geographically suited for localized distribution of LNG are selected. Natural gas flowing through the selected compressor stations is diverted to provide a high pressure first natural gas stream and a high pressure second natural gas stream. A pressure of the first natural gas stream is lowered to produce cold temperatures through pressure let-down gas expansion and then the first natural gas stream is consumed as a fuel gas for an engine driving a compressor at the compressor station. The second natural gas stream is first cooled with the cold temperatures generated by the first natural gas stream, and then expanded to a lower pressure, thus producing LNG.