With the increasingly extensive utilization of liquefied natural gas (LNG) in China today, sustainable and effective using of LNG cold energy is becoming increasingly important. In this paper, the utilization of LNG cold energy in seawater desalination system is proposed and analyzed. In this system, the cold energy of the LNG is first transferred to a kind of refrigerant, i.e., butane, which is immiscible with water. The cold refrigerant is then directly injected into the seawater. As a result, the refrigerant droplet is continuously heated and vaporized, and in consequence some of the seawater is simultaneously frozen. The formed ice crystal contains much less salt than that in the original seawater. A simplified model of the direct-contact heat transfer in this desalination system is proposed and theoretical analyses are conducted, taking into account both energy balance and population balance. The number density distribution of two-phase bubbles, the heat transfer between the two immiscible fluids, and the temperature variation are then deduced. The influences of initial size of dispersed phase droplets, the initial temperature of continuous phase, and the volumetric heat transfer coefficient are also clarified. The calculated results are in reasonable agreement with the available experimental data of the R114/water system.