Perth, Australia, July 30, 2019 - (ABN Newswire) - Liquefied Natural Gas Ltd (ASX:LNG.AX - News) (HAM:LI5.HM - News) (OTCMKTS:LNGLY - News) ended its fiscal year focused on marketing and commercial efforts to sign offtake contracts for Magnolia LNG as well as exploring new liquidity options. Concurrently, we achieved important milestones that bring us closer to a final investment decision. These milestones include state government approval of our Louisiana Industrial Tax Exemption, Notice of Schedule for Environmental Review from the U.S. Federal Energy Regulatory Commission (FERC) providing line of sight for our 0.8 million tonnes per annum (mtpa) capacity increase for Magnolia LNG, and the execution of an updated legally binding lump-sum turnkey (LSTK) fully wrapped engineering, procurement, and construction contract (EPC Contract) with the KBR-SKE&C joint venture (KSJV).
Overall, the predicted liquefied natural gas (LNG) market over-supply materialized, momentarily softening global LNG spot pricing. We believe current market conditions are transitory and will improve over the coming months as demand and weather-related factors improve. Regardless, long-term LNG contracts based on stable Henry Hub pricing remain attractive to customers across the globe, and we continue to market Magnolia LNG accordingly.
Our marketing efforts outside of China are robust, and meaningful progress toward firm agreements was made during the fourth quarter. While we continue to work with potential Chinese counterparts, execution of any offtake agreements with China remains paused as the U.S. - China trade issues continue.
On July 22, 2019, the Board of Directors announced its decision to re-domicile LNGL to the U.S. with a listing on the NASDAQ Stock Exchange. We believe listing on the NASDAQ will deliver significant benefits for our shareholders and favorably position the Company for the future. The decision was made following significant diligence and deliberation by the Board. The re-domiciliation process will utilize a Scheme of Arrangement under the Australian Corporations Act (Scheme) pursuant to which LNGL's shareholders will exchange their securities in LNGL for securities in a newly incorporated U.S. Delaware company, once shareholder, judicial, and regulatory approvals are secured. Further details including the timeline, tax implications, and independent expert's report will be included in a Scheme Booklet that will be sent to shareholders prior to the Scheme Meeting.
In keeping with our promise to shareholders, we continue to manage our liquidity closely, consistent with our stated plans. We closed June 2019 with the Company's total cash position at A$21.8 million. LNGL remains debt-free. The Company recognizes the need for future liquidity, and we are confident in our ability to raise new capital for our business.
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About Liquefied Natural Gas Ltd:
- 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.
Mr. Micah Hirschfield Sr. Manager, Communications and Investor Relations Liquefied Natural Gas Limited T: +1-713-815-6920 E: email@example.com Mr. Andrew Gould Joint Company Secretary Liquefied Natural Gas Limited T: +61-8-9366-3700 E: AGould@lnglimited.com.au
Liquefied Natural Gas Ltd
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