LNG in the energy mix

Natural gas is a reliable and flexible energy source which is converted to electricity and heat for industries and households. It can replace coal and oil as a lower carbon energy solution with reduced greenhouse gas emissions and improved air quality.

Energy Mix

Greenhouse gas emissions intensity1 natural gas vs. coal

Carbon Dioxide (CO2)



Nitrogen Oxide (NOX)



Sulphur Oxides (SOX)



Particle Matter (PM)



Greenhouse gas intensity, fossil fuels, % of coal. Source: IEA (CO2 emissions from fuel combustion 2018)

When our first LNG carrier, the Norman Lady, was delivered in 1973, natural gas accounted for one-sixth of global primary energy supply. Today, natural gas is an important part of the global economy, used for heating in half of American and European households. Most scenarios predict that global demand for LNG will continue to grow in the foreseeable future driven in Asia and Europe. Global LNG production is expected to increase in the coming decade according to Rystad Energy, which will drive demand for import and regasification capacity.

Natural gas becomes a liquid when cooled to -162 degrees Celsius at near atmospheric pressure. This reduces the volume by 600 times and enables cost-efficient transport over long distances on purpose-built vessels. As LNG carriers arrive at their end destination, the cargo is offloaded, stored and converted to a gaseous state. The LNG can be delivered to both onshore and floating terminals (FSRUs), Höegh LNG being a leading provider of the latter.

What is natural gas used for?

  • Natural gas is a ‘traditional’ source of energy that is already used for a range of functions, from power production, heating homes and businesses to cooking and transport.
  • Natural gas is also used as feedstock in chemical processes to produce fertilizers, hydrogen, plastic, paints, and a range of other products.

Advantages of natural gas 

  • When natural gas is burnt in the vessel engines, about 25% less CO2 is emitted compared to fuel oil.
  • Natural gas does not emit sulphur oxides when consumed.
  • Natural gas does not produce waste products, such as coal ash.

LNG import terminals

An FSRU is moored close to the gas market and end-users. The LNG stored onboard the FSRU is regasified and sent to shore through a high-pressure gas receiving facility and then into the gas grid.

HLNG Value Chain HLNG Value Chain

FSRUs have clear advantages to traditional onshore import terminals:

Flexible: - The most flexible solution available with all critical system fully integrated in one unit. Fully tradeable as LNGC and easy to move to any other location

Affordable: 30-40% lower installed cost and operating expenses than onshore terminals, providing delivered energy at the lowest possible unit cost

Secure: - Secure Energy with proven technology and the most experienced owner/operator in the market. Our core business is to provide energy security

Time to market: - Proven fastest time to market - down to 6 months vs. 4-6 years onshore

Operational excellence

Höegh LNG delivers reliable and cost-effective LNG import, storage and regasification services across five continents.

Operational Excellence image

We operate our assets to the highest technical standards prioritizing safety, cost efficiency and the environment. We actively seek to exceed international standards and local rules for health, safety, security and working environment.

In 2022, technical availability was close to 100% and the lost-time injury frequency (LTIF) was 0 (per million work hours).

Key accident preventing measures:

  • Building a company culture which reinforces safety awareness among employees
  • Ensuring practical and well-considered risk management onboard and ashore
  • Learning through analyzing accidents and near accidents
  • Continuous improvement of procedures and routines including skills of personnel and emergency preparedness

Our fleet

Höegh LNG's fleet of FSRU's is one of the largest, newest and most technically advanced in the industry. To date, we have owned and operated 8 LNG carriers, successfully built 10 FSRUs and completed ~1,000 ship-to-ship operations to safely transfer LNG from a carrier to the import terminal for storage and regasification.

Floating terminals

LNG carriers