Abstract The utilization of unconventional natural gas is still a great challenge for China due to its distribution locations and small reserves. Thus, liquefying the unconventional natural gas by using small-scale LNG plant in skid-mount packages is a good choice with great economic benefits. A novel conceptual design of parallel nitrogen expansion liquefaction process for small-scale plant in skid-mount packages has been proposed. It first designs a process configuration. Then, thermodynamic analysis of the process is conducted. Next, an optimization model with genetic algorithm method is developed to optimize the process. Finally, the flexibilities of the process are tested by two different feed gases. In conclusion, the proposed parallel nitrogen expansion liquefaction process can be used in small-scale LNG plant in skid-mount packages with high exergy efficiency and great economic benefits.