05/05/2017 - 14:01

LNG scores small win for Magnolia

05/05/2017 - 14:01

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West Perth-based Liquefied Natural Gas has scored a tick from a US regulator for initial site work at its Magnolia project in Louisiana, although a final investment decision won't be made until it has finalised offtake partners.

LNG scores small win for Magnolia
Gas is being used as a transition fuel as developed economies reduce carbon emissions.

West Perth-based Liquefied Natural Gas has scored a tick from a US regulator for initial site work at its Magnolia project in Louisiana, although a final investment decision won't be made until it has finalised offtake partners.

The company is planning an 8 million tonnes per annum export liquefied natural gas terminal near Lake Charles in the south of the US, among a series of other projects including in Canada and Queensland.

The US Federal Energy Regulatory Commission has given LNG a notice to proceed with initial work.

LNG managing director Greg Vesey said the project was shovel ready.

“Nevertheless, the pacing item for our Final Investment Decision (FID) and initiation of construction for Magnolia remains the finalization of our LNG offtake agreements, and our team remains fully engaged in advancing this activity,” he said.  

But most experts agree the LNG market is currently oversupplied, with one prediction last year suggesting the excess might reach as much as 100mtpa.

Shares in LNG were down 1.4 per cent to 70 cents each at the time of writing.

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