What it is
Liquefied Natural Gas (LNG) is natural gas that has been converted into a liquid form by cooling it to approximately -162 degrees Celsius (-260 degrees Fahrenheit). This process reduces its volume by about 600 times, making it economically feasible to transport large quantities by sea in specialized tankers. Once it reaches its destination, LNG is regasified and then distributed through pipelines for use in power generation, industrial processes, and heating.
LNG plays a crucial role in global energy markets, particularly for countries without direct pipeline access to natural gas sources. Its trade has expanded rapidly, allowing nations to diversify their energy supplies and reducing reliance on regional pipelines. News related to LNG export terminal developments, shipping disruptions (e.g., in the Red Sea), or major supply contracts can significantly impact natural gas prices and energy security, especially in Europe and Asia.
Why it matters
LNG is a key component of global energy supply. Its availability and price directly impact energy costs and geopolitical dynamics, especially for importing nations.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice