Provides Company Investor Presentation
Perth, May 28, 2014 AEST (ABN Newswire) - Liquefied Natural Gas Limited (
ASX:LNG) (LNGLY:OTCMKTS) provides their company investor presentation. Below are some of the highlights from the presentation.
Project Overview
LNG Limited's flagship Magnolia LNG Project, Louisiana USA
- 8 million tonne per annum (mtpa) LNG facility in the Port of Lake Charles, Louisiana, USA using LNG's patented OSMR(R) LNG Technology
Robust Financial Returns
Key financial model assumptions for base case:
- 2 x 2.0 mtpa LNG Trains
- 4.0 mtpa nameplate LNG production capacity
- 3.4 mtpa guaranteed LNG sales capacity
- Total development costs of US$30 million July 2012 - June 2015 ( Financial Close)
- Capital costs of $US2.2 billion
- EBITDA: US$380 million per annum for 20 years on 100% LNGL ownership
Investment Highlights - Magnolia LNG
Early mover advantage for US Export LNG
- Magnolia LNG strategically located in Louisiana USA for exposure to dynamic export LNG sector supported by abundant US gas reserves
- US Government support for export LNG demonstrated with FTA and non-FTA approvals being granted
- US is set to become a dominant LNG export country due to its significant uncommitted gas resource and extensive integrated gas pipeline network (recent Ukraine crisis supports this view)
- Magnolia LNG has targeted to be in the top 5 LNG export projects (in production) based on an FTA only Strategy
Low risk path to development
- Direct access to Kinder Morgan pipeline onsite and 11 major gas transport corridors to facilitate supply
- DOE approval received for FTA export up to 8mtpa (economics not reliant on a non-FTA strategy)
- Transfer of engineering IP from Fisherman's Landing creates credibility, reduced time and significant cost savings
- Significant progress made on bankable agreements to secure debt funding along with environmental studies with FERC for regulatory approval
Magnolia LNG fast tracked for a robust FID
- Project site secured for 70yrs suitable for 8mtpa (vs base case of 4mtpa)
- Filing Application accepted by FERC on 14 May 2014 supports timetable for Financial Close in mid 2015
- Tolling agreements underway for up to 7 mpta to underwrite base case of 4 mpta (Gunvor; Gas Natural; LNG Holdings and AES)
- Definitive equity commitment agreement with Stonepeak Partners LP for 100% of project construction equity (US$660 million) & Debt advisors appointed
- SKE&C appointed as preferred EPC contractor with initial capex estimates under budget
- 4mtpa name plate capacity generates EBITDA of circa US$380 million pa for 20yrs (100%)
Fisherman's Landing provides optionality
- Gas supply potential either through PetroChina Australia or directly under Gas Sales Agreements /Tolling Agreements with third parties
- Upside for LNGL valuation through gas supply agreement secured or monetisation of the project
OSMR(R) LNG Process Technology (100% LNG)
- Low cost and highly efficient LNG process technology in its Magnolia LNG Project and Fisherman's Landing LNG Project
- Magnolia LNG to pay LNGL up to US$50 in licence fees
- Success of Magnolia will secure OSMR technology as preferred choice for mid-scale LNG projects globally
To view the complete presentation, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-LNG-679174.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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