8 Shipping Companies Profiting From The LNG Boom

Dec. 26, 2012 11:50 AM ETCVX, GLNG, GLOG, GMLP, KEX, MSLOY, TGP, HOLHF34 Comments
David Kronenfeld profile picture
David Kronenfeld

Two weeks ago I wrote about 8 companies/industries that stand to benefit from a continued uptick in domestic oil and natural gas production. Among those industries was liquefied natural gas (LNG) marine shipping which profits from moving LNG around the globe in search of arbitrage opportunities within the distorted LNG market. The following eight companies are marine shipping companies which will profit from increased volumes of and demand for LNG throughout the global market. This list was compiled by screening publicly traded marine transportation companies for ones operating LNG carriers.

GasLog Limited (GLOG) - GasLog focuses solely on the management and operation of LNG carriers. The company owns 2 carriers, manages another 12 ships, and has 8 more wholly owned vessels under construction with 6 of those slated for delivery in 2013. GasLog's 2 wholly owned vessels are under multi-year contracts and has contracts in place for the ships scheduled for delivery in the first quarter of 2013. A relative newcomer to the LNG shipping space, GasLog IPO'd in April 2012, and offers investors a strong growth opportunity as new vessels come online and are placed under contract. The company's 3.8% dividend yield is also a welcome addition to GasLog's growth prospects.

Golar LNG Ltd. (GLNG) - Golar LNG is similar to GasLog in its focus on the LNG market, however, the company operates floating storage and re-gasification units (FSRU) in addition to its LNG carriers. Normal LNG carriers are restricted to off-loading their cargoes in ports with specialized re-gasification facilities designed to render LNG back into usable natural gas. FSRU vessels allow a shipper to transport LNG to ports lacking re-gasification facilities and thus open additional markets up to LNG shippers. Golar is also developing floating LNG production facilities that would operate like reverse FSRU vessels and allow LNG to be produced onboard instead of at dedicated

This article was written by

David Kronenfeld profile picture
David is an attorney and former investment banker. He maintains the blog www.shipwreckology.com which focuses on nautical news and history.

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