LNG

AAA

DEFINITION of 'LNG'

LNG, or liquefied natural gas, consists mostly of methane and is cooled to approximately -256 degrees Farenheit so that it can be transported from countries that have more natural gas than they need to countries that use more natural gas than they produce. In its liquefied state, natural gas takes up 1/600th of the space, making it much easier to ship and store when pipeline transport is not feasible. As world energy consumption increases, experts anticipate that the LNG trade will grow in importance.

INVESTOPEDIA EXPLAINS 'LNG'

Despite having one of the world's largest reserves of natural gas, the United States imports a small percentage of its natural gas as LNG from Trinidad and Tobago, Egypt, Norway, Qatar, and Nigeria. Other major exporters of LNG include Indonesia, Russia, Yemen, and Norway. Russia has the world's largest supply of natural gas, followed by Iran and Qatar. In 2008, Japan was the world's largest importer of LNG.

RELATED TERMS
  1. American Clean Energy And Security ...

    A piece of legislation that was created in an attempt to establish ...
  2. Energy Sector

    A category of stocks that relate to producing or supplying energy. ...
  3. Nonrenewable Resource

    A resource of economic value that cannot be readily replaced ...
  4. Natural Gas ETF

    Exchange-traded funds (ETFs) that invest in natural gas futures ...
  5. Export

    A function of international trade whereby goods produced in one ...
  6. Import

    A good or service brought into one country from another. Along ...
Related Articles
  1. Active Trading

    Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.
  2. Mutual Funds & ETFs

    Investing In Oil And Gas UITs

    Unit investment trusts provide direct exposure to the energy sector, fueling better returns.
  3. Fundamental Analysis

    Accounting For Differences In Oil And Gas Accounting

    How a company accounts for its expenses affects how its net income and cash flow numbers are reported.
  4. Options & Futures

    Do Oil and Natural Gas Prices Rise And Fall Together?

    Do the prices of crude oil and natural gas affect each other? Investopedia explores price patterns and provides analysis.
  5. Stock Analysis

    Energy Transfer Partners' Mexican Ambitions

    There has been a lot of talk over the past year or so about America's enticing ability to export natural gas to global markets
  6. Economics

    Gas Dispute Poses Risks For Both The EU And Russia

    The Russia-Ukraine gas dispute has caused energy insecurity for the EU, which is seeking new gas suppliers, and market uncertainty for Russia's Gazprom.
  7. Stock Analysis

    Why Westport Innovations Will Keep Struggling

    The energy sector has been a minefield for investors, with many companies seeing their business models threatened by lower prices for oil and natural gas.
  8. Stock Analysis

    Is Cheniere Energy Still On Track For 2016?

    The energy boom in the U.S. has opened up a huge range of opportunities in the oil and gas industry.
  9. Stock Analysis

    What's Behind Chesapeake Energy's Massive Plunge?

    Among energy stocks, Chesapeake Energy has gone through more than its share of turmoil over the past several years.
  10. Stock Analysis

    What’s FuelCell Energy Strategy To Stand Out?

    FuelCell Energy stands out from most companies in the fuel cell industry by concentrating on a different niche that involves a different type of technology

You May Also Like

Hot Definitions
  1. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  5. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
  6. Currency Carry Trade

    A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase ...
Trading Center