For years, the LNG export game has been dominated by both the national oil companies in major export nations like Qatar, and the integrated major oil companies. As the U.S. looks to start exporting LNG, though, a new group of companies are emerging as a major player: Master Limited Partnerships.
In many ways, the business of owning and operating an LNG facility are ideally suited to the MLP structure. These facilities run on long-term contracts that make revenue streams and cash generation relatively predictable. This is exactly the kind of business an MLP is looking for. Steady cash generation means the company can maintain coverage ratios on their distributions. Tune into the video below, where Fool.com contributor Tyler Crowe takes a look at some other ways in which MLPs and LNG could become best friends, and which MLPs are trying to make a push into the LNG game right now.
