10/12/2014 - 14:23

LNG Ltd moves for US approval

10/12/2014 - 14:23

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A subsidiary of Perth company Liquefied Natural Gas has filed for a permit to export gas from the US to a planned LNG plant in Canada.

LNG Ltd moves for US approval
LNG managing director Maurice Brand. Photo: Attila Csaszar

A subsidiary of Perth company Liquefied Natural Gas has filed for a permit to export gas from the US to a planned LNG plant in Canada.

Bearhead, which was purchased in August by LNG for $US11 million from Anadarko Petroleum, will have an initial production capacity of 8 million tonnes per annum.

The authorisation, which would require approval by the US Department of Energy, would apply for 25 years.

The company is seeking approval to export up to 1.4 billion cubic feet of gas to Canada per day.

It follows an application to the Canadian National Energy Board, to allow the liquefied gas to be re-exported from Canada.

Bearhead chief operating officer John Godbold said it was a significant step forward for the Nova Scotia facility.

“With all of Bear Head LNG’s major Canadian approvals in place or moving through the regulatory process, we are on schedule to begin commercial operation in late 2018 to early 2019,” he said.

LNG has had a stellar year, with strong gains in its share price delivering a total shareholder return of more than 1,600 per cent for the 12 months to June 30.

The gains have primarily been on the back of progress at its Magnolia LNG project in Lousiana.

Gas prices in America are down by a third from a peak earlier this year, but have decoupled somewhat from lower global prices due to the country’s unique regulatory settings for domestic gas supplies.

Worldwide, natural gas prices tend to reflect changes in the price of oil.

LNG was up 0.8 per cent to $2.50 per share at the close.

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