Provided are an apparatus and method for liquefying natural gas. The apparatus for liquefying natural gas includes a gas compressor configured to receive and compress the natural gas from a natural gas feed stream, a heat exchanging unit configured to cool a high-pressure natural gas passing through the gas compressor through heat exchange, an expansion valve configured to expand the cooled natural gas passing through the heat exchanging unit, a hold-up drum configured to phase-separate a gas-liquid mixture produced by passing through the expansion valve and divide the gas-liquid mixture into a liquefied natural gas and a cryogenic recycle gas having nitrogen content greater than that of the liquefied natural gas so as to discharge the liquefied natural gas and the cryogenic recycle gas, and a bypass line configured to provide the recycle gas discharged from the hold-up drum to the heat exchanging unit.