Perth, Australia (ABN Newswire) - Liquefied Natural Gas Limited (ASX:LNG) (OTCMKTS:LNGLY) (LNGL) holds a strong competitive position in the mid-scale LNG industry with our three LNG projects: Magnolia LNG, in Lake Charles, Louisiana, USA; Bear Head LNG in Richmond County, Nova Scotia, Canada; and Fisherman's Landing LNG, in Queensland, Australia. All three projects have essentially achieved full permitting and regulatory approval, have completed project engineering to advanced stages, and are ready to progress to construction.
Our patented OSMR(R) technology platform provides substantial competitive cost and efficiency advantages.
Like others in the energy industry, current weakness in energy markets and other factors have affected LNGL's progress in signing binding offtake to enable the projects to move at planned pace to FID, financial close, and construction. LNGL's ongoing work program reflects the impact of slowing industry conditions and includes:
- Commercial focus on signing binding offtake agreements for Magnolia LNG;
- Placing on hold our EPC and related contracts;
- Finishing residual engineering, regulatory and permitting work on our projects;
- Maintaining the projects in "ready mode" to enable fast track ramp-up once sufficient levels of binding offtake agreements are signed; and
- Prudently managing our cost base.
LNGL had approximately A$114 million at 1 January 2016 (inclusive of restricted and unrestricted funds). In applying our cost management strategy our existing cash position can sustain us through to the end of 2018. We believe that within this timeframe we will conclude sufficient offtake agreements to progress one or more of our projects to FID and financial close.
We remain confident in our fundamental view of global gas demand and the role the LNG industry has in meeting that demand. LNGL is well placed to participate in that delivery through execution of its Energy Link strategy.
- Magnolia LNG signed a lump sum turnkey EPC contract with KBR lead KSJV
- Signed strategic alliance agreements with Siemens, Chart and EthosEnergy
- FERC issued the FEIS for the Magnolia LNG project
- The necessary waiting periods under U.S. law have elapsed and the FERC may issue the FERC Order on the Magnolia LNG at any time
- Appointment of experienced LNG executives: Anthony Gelotti as LNGL's Chief Development Officer and John Baguley as LNGL's Chief Technical Officer
- Appointment of Philip D. Moeller as NED, replacing Madam Yao Guihua
To view the full quarterly update, please visit:
About Liquefied Natural Gas Ltd:
Limited Natural Gas Limited (LNGL) (ASX:LNG) (OTCMKTS:LNGLY) is an ASX listed company focused on development of mid-scale LNG plants. LNGL's business strategy aims to deliver lower capital and operating costs, faster construction timelines and improved efficiency, relative to larger traditional LNG projects. LNGL's portfolio includes 100% ownership in Magnolia LNG LLC, Bear Head LNG Corporation, Gladstone LNG Pty Ltd, and LNG Technology Pty Ltd, which owns and develops the OSMR(R) LNG liquefaction process.
Liquefied Natural Gas Ltd
Mr. Maurice Brand
Managing Director & CEO
+61 8 9366 3700
Mr. Mike Mott
Chief Financial Officer
+1 713 815 6909
Mr. Rick Cape
Chief Commercial Officer
Magnolia LNG LLC
+1 713 815 6915
Source: ABN/Asia Business Newswire
(January 31, 2016 - 5:47 PM EST)
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