Perth, Australia (ABN Newswire) - Liquefied Natural Gas Ltd (ASX:LNG) (OTCMKTS:LNGLY) provides the Company's 2018 Annual Report.
We are pleased to report to our shareholders that liquefied natural gas (LNG) demand is in a period of rapid expansion. Strong global economies coupled with demand for cleaner fuels is driving this growth.
For LNG suppliers, the 2017/18 winter market ended on a high basis, with Asian LNG prices close to $US10 per million BTU. These higher prices were achieved even with the global LNG market absorbing approximately 30 million tonnes per year of additional supply. These outcomes were in stark contrast to 2016/17 forward market forecasts thereby indicating acceleration in LNG demand and potentially future supply constraints.
These positive market indicators continued throughout 2018 with seasonally robust spot LNG prices, a strengthening European natural gas market, and an overall stronger energy market globally. These factors all contribute to a business environment supportive of new LNG investment reflecting the following emergent themes:
- Gas displaces coal;
- Increasing global electrification;
- Non-traditional markets view gas as a preferred fuel;
- Gas and LNG play an important role in lowering the carbon intensity of economic growth;
- Gas provides reliable power that supports renewables; and
- As gas demand grows; LNG demand grows faster.
With increasing demand and unsustainably low numbers of recent financial investment decisions (FIDs) for new liquefaction facilities globally, a tighter LNG market will unfold. As such, we believe Liquefied Natural Gas Limited is extremely well positioned to bring new LNG supply to the market in a timely manner.
Our Magnolia LNG project is the most mature of all the competing U.S. Gulf Coast greenfield LNG projects. Likewise, our Bear Head LNG project is fully permitted and is looking to partner with producers to export gas to global markets. In addition, our OSMR(R) liquefaction technology provides environmental attributes coveted by the evolving global gas markets. Coupled with the industry knowledge and project execution experience of our team, we are excited by the current opportunities.
We are now working extremely hard to progress our projects to a positive financial investment decision. The combination of the "shovel-ready" Magnolia LNG project with increasingly supportive market conditions fuels our confidence to achieve success. We anticipate to contract facility off-take from world class credit worthy companies and to begin construction of the project.
On behalf of the Board, we thank you, our Shareholders, for your continued support and we look forward to continuing our progress in the next fiscal year.
I am pleased to introduce the Annual Report for the year ending June 30, 2018.
To view the Annual Report, please visit:
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 mtpa or greater LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
- Bear Paw Pipeline Corporation Inc. (Bear Paw), 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(R) LNG liquefaction process, a mid-scale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.
Liquefied Natural Gas Ltd
Liquefied Natural Gas Limited