Perth, Australia (ABN Newswire) - Liquefied Natural Gas Ltd (ASX:LNG) (OTCMKTS:LNGLY) provides the Company's Quarterly Highlights and Appendix 4C.
A Message from the Managing Director and Chief Executive Officer
The fourth quarter of Liquefied Natural Gas Limited's (LNGL or the Company) fiscal year was very dynamic as we continued to progress our negotiations with a number of potential offtakers, monitored new and changing trade issues, and secured a major new investor. We are very excited to welcome IDG to LNGL's investor group and look forward to expanding our marketing efforts in Asia through their network. We also had a strong presence at the recent World Gas Conference, resulting in productive meetings with many potential customers and an increase in support and confidence in both Magnolia LNG and our OSMR(R) technology.
The pricing in the LNG market across the globe during the current shoulder season has remained strong, which differs from recent years. Buyers are looking to lockup long term LNG supply with forecasts showing demand growth coming from Asia and Europe, and price movements across the globe are making U.S. Gulf Coast LNG very attractive. This development lends additional credibility to an outlook of demand significantly outpacing supply much earlier than pundits have predicted, potentially as early as next year. Offtakers have become more aggressive seeking long-term volumes, with many expected to make buying decisions in the second half of the year. Considering offtakers' predicted timelines, we continue to push for a final investment decision (FID) by the end of the year, however given the magnitude of these decisions for buyers, there is potential for spill over to 2019.
The Share Placement to IDG Energy Investment Group Limited, an investment holding company listed on the Stock Exchange of Hong Kong and affiliated with IDG Capital, raised gross proceeds of A$28.2 million. The transaction provides the Company with sufficient operating funds through mid-2020. In addition to the IDG announcement, the Magnolia LNG, LLC extended the validity period of its binding engineering, procurement, and construction (EPC) contract with KSJV (a KBR - SKE&C joint venture led by KBR) through December 31, 2018 and extended the financial close date of the legally binding offtake agreement with Meridian LNG Holdings Corporation to September 30, 2018.
Interest around Bear Head LNG remains strong, as we continue to discuss the project with both upstream producers in Western Canada and potential European customers. Our efforts remain focused on a solid gas supply solution, and we are enlisting the support of many companies to help us in that area. Bear Head LNG continues to work to close remaining conditions associated with its completed suite of permits.
In keeping with our promise to shareholders, we continue to manage our liquidity closely, consistent with our stated plans. We closed June 2018 with the Company's total cash position at A$50.7 million and remain debt free.
To view the full report, please visit:
http://abnnewswire.net/lnk/0380SICB
About Liquefied Natural Gas Ltd:
Liquefied Natural Gas Limited (ASX:LNG) (OTCMKTS:LNGLY) (LNGL) is an ASX listed company whose portfolio consists of 100% ownership of the following companies:
- Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an eight mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;
- Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian based subsidiary, which is developing an 8 mtpa or greater LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
- Bear Paw Pipeline Corporation Inc. (Bear Paw), proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG; and
- LNG Technology Pty Ltd, a subsidiary which owns and develops the Company’s OSMR(R) LNG liquefaction process, a mid-scale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.
Source:
Liquefied Natural Gas Ltd
Contact:
Mr. Micah Hirschfield
Sr. Manager, Communications and Investor Relations
Liquefied Natural Gas Limited
T: +1-713-815-6920
E: mhirschfield@lnglimited.com
Mr. Andrew Gould
Joint Company Secretary
Liquefied Natural Gas Limited
T: +61-8-9366-3700
E: AGould@lnglimited.com.au
Source: ABN/Asia Business Newswire
(July 26, 2018 - 6:38 PM EDT)
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