What is a "bridge fuel" and why is natural gas considered one?

A bridge fuel is a transitional energy source that helps reduce emissions while society moves toward fully renewable power. Natural gas is considered an ideal bridge fuel because it produces about 50% less carbon dioxide than coal when burned for electricity, while still providing reliable, consistent power. As countries work to build renewable capacity over the coming decades, natural gas offers a cleaner alternative to coal that can be implemented immediately.

What is LNG and why is it important for global energy markets?

LNG stands for Liquefied Natural Gas, which is natural gas that has been cooled to approximately -260°F, converting it to a liquid state. This liquefaction reduces its volume by about 600 times, making it much more economical to transport across oceans where pipelines aren't feasible. LNG is crucial for global energy markets because it allows natural gas to be shipped worldwide, connecting producers (like the U.S.) with international markets that are trying to reduce coal usage or secure energy independence.

What types of companies are included in the Bridge Fuel Brigade portfolio?

This portfolio includes a diverse range of companies across the natural gas value chain: upstream producers that extract natural gas, midstream companies that process and transport it, infrastructure developers that build LNG export and import terminals, shipping companies that operate specialized LNG carrier vessels, and utilities that distribute natural gas to customers. This comprehensive approach provides exposure to multiple aspects of the growing global demand for natural gas as a transition fuel.

How might environmental regulations affect natural gas investments?

Environmental regulations generally have a mixed impact on natural gas investments. On one hand, stricter emissions standards often benefit natural gas companies as they accelerate the shift away from coal. On the other hand, as climate policies advance, there may eventually be pressure to move beyond natural gas to fully renewable options. However, most energy experts believe natural gas will remain an essential part of the global energy mix for decades to come, particularly for providing reliable baseload power when renewable sources like wind and solar aren't generating.

What is a regasification terminal and why is it important?

A regasification terminal is a facility that converts liquefied natural gas (LNG) back into its gaseous state after it's been transported by ship. These terminals are crucial infrastructure that allow importing countries to receive natural gas from around the world. Some companies in this portfolio specialize in floating storage and regasification units (FSRUs), which are essentially floating terminals that can be deployed more quickly and flexibly than traditional land-based facilities, making them particularly valuable as countries rapidly transition away from coal.

15 handpicked stocks

Bridge Fuel Brigade

This carefully selected collection of stocks focuses on companies leading the charge in natural gas adoption as a cleaner transition fuel. Our professional analysts have identified businesses positioned to benefit from the global pivot away from coal toward cleaner energy solutions.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17