William Wood Prince was furious.
It was 1951, and the local natural gas supplier had just notified the Chicago businessman of yet another price increase.
Prince knew natural gas was dirt cheap down in Louisiana. If only there were a way to ship the volatile fuel up the Mississippi…
So he teamed up with the Continental Oil Company to explore the idea.
It wouldn’t be easy. Natural gas has to be cooled to -260°F before it turns into a liquid that can be shipped.
After running the numbers, Prince was dismayed to find that shipping gas to Chicago wouldn’t be worth it.
But, it could potentially lead to a lucrative new business…
Across the ocean, natural gas prices in Britain were sky-high. After the Great Smog of 1952, the country had passed laws to clean up air pollution. And natural gas was the fuel of choice to replace dirty coal.
Shipping cheap gas from the Gulf Coast across the Atlantic could be profitable.
So, Prince and Continental Oil decided to convert the Nomarti – an old World War II era cargo ship – into the first liquefied natural gas (“LNG”) carrier.
Engineers had to line the hull with 12 inches of balsa wood – the only material at the time capable of holding the weight of the gas while keeping it cool.
The world’s first LNG carrier (Source: SIGTTO/GIIGNL)
The newly christened Methane Pioneer made its first shipment in 1959, bringing 190,000 cubic feet – about 7 swimming pools – of LNG to England.
Now almost 65 years later, nearly 52 billion cubic feet of LNG are shipped every day around the world.
Here at the Intelligent Income Daily, we’re focused on finding the safest income investments on the market. Natural gas is one of the most widely used fuels in the world. And with the right investments in natural gas infrastructure, you can lock in reliable profits.
Today I want to show you why demand for natural gas is set to soar in the coming years. I’ll also give you one way to profit from the sector while collecting reliable high yields.
This Trend is Set to More Than Double
America is now the largest exporter of LNG in the world.
In the first half of 2023, U.S. exports of LNG averaged 11.6 billion cubic feet per day (Bcf/d). That’s over four times more than its LNG exports just five years ago.
And this rapid growth is expected to continue over the next decade.
Germany, Vietnam, and the Philippines started importing LNG for the first time this year. And four more countries are expected to begin LNG imports next year.
China is on a natural gas shopping spree. One of the country’s largest private energy companies just signed a 20-year deal to buy gas from the U.S. And other state-owned energy companies are in discussions for more natural gas deals.
Over the past few years, Asia’s largest economy has been locking in long-term contracts for LNG shipments. China is set to become the world’s largest importer of LNG this year.
The country has faced many electricity shortages in recent years. LNG is one way to ensure a steady supply of energy at reasonable prices. According to the consulting company Rystad Energy, China’s LNG imports could double over the next decade.
India and European nations are also looking for LNG deals to avoid future energy shortages and reduce the use of coal.
According to the Energy Information Administration, America’s LNG exports are projected to increase by 150% over the next decade.
You might think that investing in LNG shipping companies would be a good idea. But this day and age their earnings depend on commodity prices and shipping rates which can change rapidly.
Instead, the better way to benefit from the growth of LNG is to invest in natural gas pipelines.
Pipeline companies that transport LNG get a steady profit for every gallon they deliver, no matter what the price of natural gas is. That means they have reliable earnings that grow as demand for gas increases.
One quick way to add these pipeline companies to your portfolio is through the Global X MLP & Energy Infrastructure ETF (MLPX). This exchange-traded fund owns a collection of the top pipeline companies.
MLPX yields 5.3% and has produced 113% returns over the past three years. That’s 3 times better than the S&P 500.
And for members of my Fortress Portfolio service, there’s an even better opportunity worth trillions of dollars to the pipeline industry. It’s a deal that the Wide Moat Research team has spent months researching.
It’s a patented breakthrough technology that is poised to usher in a new era of energy. And it will change the game for the transition from fossil fuels to renewable energy.
To find out more, click here to watch my “One Deal” Retirement Summit…
The increased demand for LNG is about to get a whole lot bigger.
Happy SWAN (sleep well at night) investing,
Brad Thomas
Editor, Intelligent Income Daily