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 terminals

Höegh LNG has the one of the largest, newest and most technically advanced FSRUs in the industry. To date, we have owned and operated 8 LNG carriers, successfully built 10 FSRUs and completed ~1000 ship-to-ship operations to safely transfer LNG from a carrier to the import terminal for storage and regasification.

Clean Energy image

Clean energy solutions

Höegh LNG plans to leverage the extensive experience from floating terminals, liquid gas handling and marine gas transportation to expand our services into energy transition markets. Together with customers and partners, we plan to develop floating terminal solutions for carbon capture and storage (CCS), ammonia, hydrogen and other segments. The solutions will aim to help our customers reduce their carbon footprint whilst continuing to provide reliable energy solutions. We look forward to working with our customers to provide them and countries with sustainable and cost-efficient energy solutions.

Energy security cases

Delivering energy independence to a whole region

Lithuania once relied on piped Russian gas and paid the highest prices in Europe. That changed when Höegh LNG’s FSRU Independence arrived in 2014.

Delivering energy independence to a whole region

“Since the start of its operation, the terminal has lived up to its name and purpose – today we have ensured our independence from the Russian ‘gas needle’, our supplies have been successfully diversified and we are able to import natural gas from around the world,” stated Dainius Kreivys, Minister of Energy, in 2022.

In 2012, Höegh LNG was awarded the contract to provide a floating storage and regasification unit (FSRU) for Lithuania’s Klaipėda LNG energy import terminal on the Baltic Sea.

The naming ceremony for the floating terminal – Independence – took place in February 2014 with the then incumbent President of Lithuania, H.E Dalia Grybauskaite, as the Lady Sponsor. The Independence was welcomed with Lithuanian flags waving high, a naval brass band and a cannon salute – marking the end of Russian gas dependency and the start of a new era of secure and diversified energy supply.

“This is a strategic geopolitical project that may decide the future of the whole region,” Grybauskaite commented.

“We are now an energy-secure state,” she added.

Lithuania joined the European Union and NATO in 2004. Still, the country was completely dependent on Russia for natural gas until the Independence started operations in 2014. Lithuanian households and industry paid the highest natural gas prices in Europe at the time, but this changed when the import terminal started operations.

Independence’s regas capacity, when converted to electricity, is equivalent to 7 million average EU households. This exceeds Lithuania’s annual consumption and has allowed the nation to completely free itself from Russian gas imports. The excess import capacity enables neighbouring countries including Latvia, Estonia, and Poland to access LNG and diversify the regional energy supply.

Fast-tracking Germany to energy security

Fast-tracking Germany to energy security

Germany and many other European countries have relied on the import of Russian natural gas to meet national energy requirements. Europe’s largest economy has historically relied on Russia for a third of its gas supply. After the geopolitical events of 2022, German authorities set out to end its reliance on Russian gas by summer 2024 and ensure a diversified, reliable and secure supply of energy.

Höegh LNG and its fleet of high-capacity, modern FRSUs have proven instrumental in Germany’s quest to succeed as quickly as possible.

When the Höegh Esperanza arrived in Wilhelmshaven, a coastal town in Lower Saxony, in the middle of December 2022, German newspaper Bild labelled her the “ship of hope”. A few days later, a grand opening ceremony was held for Germany’s first floating LNG import terminal.

“Germany and the EU will become a great deal more secure and independent,” German chancellor Olaf Scholz said in his opening speech.

It took only ten months from the initial contact between the authorities and Höegh LNG for the FSRU to be successfully installed and ready to supply natural gas to German industry, businesses and households.

From early 2023, three of Höegh LNG’s FSRUs are located in Germany. The Höegh Esperanza is in Wilhelmshaven, the Höegh Gannet is in Brunsbüttel and the Neptune is located in Lubmin. Collectively, they represent approximately 20 billion cubic meters (bcm) of annual regas capacity, potentially replacing a third of Russian pipeline gas imports.

The speed at which the gas import terminals were established demonstrates the versatility and flexibility that FSRUs provide and their critical role enabling access to global gas markets. The three FSRUs will provide energy diversification and security to Germany and Europe.

“When we said that, for example, such a terminal should be built here in Wilhelmshaven already this year, many said that's never possible, that would never succeed. And the opposite is true,” said Scholz.