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LNG (Liquefied Natural Gas)

MB Capital Strategies Glossary — Updated June 2026

LNG (Liquefied Natural Gas) is natural gas that has been cooled to approximately -162°C, shrinking its volume by around 600 times. This makes it economical to ship across oceans in specialised insulated tankers, connecting natural gas producers (US, Qatar, Australia, Norway) with importing markets (Europe, Japan, South Korea, China) where no pipeline connection exists. LNG has become one of the most strategically important commodities in global energy markets, particularly after Europe's pipeline supply from Russia was disrupted in 2022.

The LNG Value Chain

StageWhat HappensInvestment Exposure
UpstreamGas extraction from reservoirsE&P companies (EQT, Coterra, QatarEnergy)
LiquefactionGas cooled to -162°C at LNG terminalInfrastructure: Cheniere, New Fortress Energy, Venture Global
ShippingLNG carriers transport cargo in cryogenic tanksFLEX LNG (FLNG), Golar LNG, New Fortress, Höegh LNG
RegasificationLNG returned to gaseous state at import terminalInfrastructure: National Grid, Bosch Thermotechnik
DistributionGas distributed via local pipeline network to power plants and industryMidstream / utility companies

LNG Shipping: The Investable Angle

For hard-asset investors, the most accessible LNG investment is via LNG shipping companies, which own and operate the specialised vessels that move LNG between terminals. LNG carriers are among the most complex and expensive ships ever built — a Q-Flex or Q-Max carrier (Qatar-sized) costs $200–260m. They require specialised crew and maintenance, creating significant barriers to entry and supporting long-term charter rates.

Why LNG shipping dividends are relatively stable: Most LNG carriers operate under long-term time charters (5–20 years) directly tied to the underlying LNG supply contracts. A vessel built to serve a specific liquefaction project (e.g. Sabine Pass) often has its charter life matched to the project's offtake contracts. This is fundamentally different from crude tankers, which are largely spot-exposed.
FLEX LNG (FLNG) — Marco's LNG Position:
FLEX LNG owns 13 modern LNG carriers. In 2025, the fleet operated at approximately 100% utilisation under long-term charters averaging ~$86,000/day and 6.8 years remaining tenor. The company paid approximately $3.75/share in annual dividends — a yield of 9–12% depending on share price. The key risk: as charters roll off from 2029 onwards, re-chartering rates depend on the LNG market supply/demand balance at that time. An oversupply of new LNG carriers (several hundred on order globally through 2028) could pressure re-charter rates.

LNG Pricing: Henry Hub vs. JKM vs. TTF

Price IndexRegionRelevance for Investors
Henry Hub (US)US Gulf Coast productionUS LNG export breakeven; low US prices = more competitive US LNG globally
TTF (Dutch Title Transfer Facility)European gas hubEuropean import price; TTF premium over HH = US LNG export margin
JKM (Japan-Korea Marker)Asia PacificAsian LNG spot price; JKM-TTF spread drives cargo routing to Asia vs. Europe

Key LNG Stocks in Marco's Universe

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Marco Bozem MB Capital Strategies LNG Shipping Investor

Marco Bozem

Investor & Analyst | Hard Assets, Dividends, Shipping | MB Capital Strategies

Marco analyses commodity and dividend stocks with a focus on shipping, mining and energy. All analyses are based on publicly available annual reports and his own assessment. Not investment advice.

Disclaimer: All content on this page is for educational and informational purposes only. Nothing here constitutes investment advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own research or consult a qualified financial adviser before making investment decisions. Marco Bozem may hold positions in companies mentioned. © 2026 MB Capital Strategies.