What Are Liquefied Natural Gas Stocks?


Quick Answer

Liquefied natural gas stocks are fast-growing investments in companies that make the clear, odorless liquid that forms when natural gas cools to -260 degrees Fahrenheit, explains the American Petroleum Institute. Companies can transport natural gas safely in its liquid state because it is not explosive or flammable as a liquid.

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Full Answer

The Federal Energy Regulatory Commission, the Department of Transportation, the U.S. Coast Guard and the Department of Homeland Security make sure that vessels and facilities provide and deliver safe operations and transport. It is a cleaner alternative for power plants over coal. It's also a lot safer option than nuclear power, according to the American Petroleum Institute.

As of 2015, advancements in fracturing and drilling have led to an increase in the amount of shale gas resources in the United States. Exporting natural gas supports thousands of jobs in the United States. An IHS report estimates that every 1 billion cubic feet per day of shale gas supports roughly 32,000 total jobs. There is a great demand overseas for liquefied natural gas, reports the American Petroleum Institute.

Key factors for investing in liquefied natural gas are the cost of production, cost of delivery and a low natural gas to crude oil price environment, notes Investing Daily. Pipeline projects could increase competition. There are numerous stocks that can provide opportunities to invest in the LNG market, according to NASDAQ.

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