Abstract: Peaking and distribution-type liquefied natural gas （LNG） plants, due to their ability to flexibly respond to load fluctuations, have become a key component of the energy security system. Based on the characteristics of peak shaving and distribution type liquefied natural gas （LNG） production plants, this paper systematically analyzes the technical advantages of oil-injected screw compressors and explores their application mechanisms in scenarios such as mixed refrigerant refrigeration cycles, evaporation gas （BOG） recovery, and process gas compression. This paper takes a 20×10⁴ m³/d liquefaction plant as an example to verify the process flow and equipment operation effect, and proposes optimization selection and operation and maintenance strategies, providing a reference for equipment selection and efficient operation in similar plants.