Quarterly Report March 2014
Perth, April 28, 2014 AEST (ABN Newswire) - Liquefied Natural Gas Limited (
ASX:LNG) (LNGLY:OTCMKTS) - A Technical Services Agreement (TS Agreement) was executed with SK E&C USA. Inc, a wholly owned subsidiary of SK Engineering and Construction Co. Ltd., of Korea (SKEC Group). The TS Agreement relates to the ongoing engineering, procurement and construction (EPC) activities for MLNG's planned 8 million tonne per annum (mtpa) Magnolia LNG Project, in Lake Charles, Louisiana, United States (MLNG Project). The TS Agreement follows a Memorandum of Understanding that was executed by the parties earlier in the quarter.
The US Department of Energy (DOE) granted authorisation to export an additional 4 mtpa of LNG to Free Trade Agreement (FTA) countries with the United States. This follows the DOE's initial approval granted on 26 February 2013 to export up to 4 mtpa of LNG to FTA countries.
Mr John G. Baguley has been appointed as Chief Operating Officer and Rick R. Cape has been appointed as Chief Commercial Officer for the MLNG Project based in Houston, USA.
Three Monthly Progress Reports were filed with the US Federal Energy Regulatory Commission (FERC) during the quarter. FERC is the primary approval authority for US LNG projects in regard to permitting and environmental approvals.
MLNG established a project office in Lake Charles, Louisiana, USA.
Corporate
- A placement of 10 million new shares in the Company, at $0.42/share, raised $4.20 million (pre costs).
- The current balance of American Depositary Receipts (ADRs) trading on the OTC International platform in the United States stands at over 42,000. The Company's ADRs trade under the symbol "LNGLY" and represent 1 ADR for every 40 ordinary Company shares.
- Cash balance of $12.5 million as at 31 March 2014.
Outlook & Objectives
Corporate Objectives:
- To finalise development funding plans for the MLNG Project through to Final Investment Decision targeted for late 2014 and Financial Close targeted for mid 2015.
- To continue to implement a full investor relations plan to enable Australian investors and shareholders to understand the potential value of the MLNG Project.
MLNG Project, Lake Charles, Louisiana, United States:
- Conclude and execute definitive Tolling Agreements with Brightshore Overseas, Ltd, Gas Natural SDG SA, LNG Holdings Corp., and other parties.
- Submit application to FERC and request that MLNG be permitted to File its application at the end of April 2014 for FERC's authorisation for the siting, construction, ownership MLNG Project.
- The Company will continue to provide monthly status reports posted through the ASX and included on both the Company's website and MLNG's website.
Fisherman's Landing LNG Project, Gladstone, Queensland:
- Pending the securing of gas supply, the project is effectively on a care and maintenance program.
Review of project developments
The Company continues to make significant progress in relation to its proposed MLNG Project.
The MLNG Project comprises the proposed development of an 8 mtpa LNG export project on a 115 acres site, in an established LNG shipping channel in the Lake Charles District. The development is based on the staged development of 4 x 2 mtpa LNG production trains using the Company's wholly owned OSMR® LNG process technology and the completed LNG plant front end engineering and design for the Company's Fisherman's Landing LNG Project, in Gladstone, Australia.
To view the full quarterly report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-LNG-675103.pdf
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 – 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
- Bear Paw Pipeline Corporation Inc. (Bear Paw), which is 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® LNG liquefaction process, a midscale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.
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