Quarterly Activity Report and Appendix 4C
Perth, Jan 31, 2020 AEST (ABN Newswire) - Liquefied Natural Gas Limited (
ASX:LNG) (LI5:FRA) (LNGLY:OTCMKTS) achieved several milestones in the second quarter of the fiscal year, with a synopsis of these accomplishments provided in the Quarterly Activities report.
Shortly after quarter end, LNGL received the Supplemental Final Environmental Impact Statement (FEIS) from the United States Federal Energy Regulatory Commission (FERC) for the Magnolia LNG production capacity amendment. The FEIS is a key milestone in our effort to increase Magnolia LNG's capacity to 8.8 million tonnes per annum (mtpa) to further enhance project economics. We also reported advancement on our MOU to supply 2 mtpa of LNG to an LNG-to-power project in Vietnam.
Magnolia LNG:
- On October 11, 2019, Magnolia LNG and DeltaOE agreed to extend the validity date of their MOU until July 1, 2020 and entered into an Amended and Restated Memorandum of Understanding. The parties also agreed to use reasonable efforts to negotiate and reach agreement on the terms and conditions of the SPA by May 31, 2020.
- On November 4, 2019, LNGL announced that the Company had been chosen to participate in a United States Business Development Trade Mission to Thailand, Indonesia, and Vietnam led by U.S. Secretary of Commerce Wilbur Ross from November 3 - 8, 2019 including attendance at the Indo-Pacific Business Forum in Bangkok. The mission sought to accelerate U.S. commercial activity in Southeast Asia including liquefied natural gas (LNG) and other industries, supporting job creation and export opportunities for U.S. based companies and projects, and to meet the region's needs for economic growth and development.
- On November 25, 2019, LNGL announced the Company had extended the validity period of its binding engineering, procurement, and construction (EPC) contract with KSJV (a KBR - SK E&C joint venture led by KBR) for its 100% owned subsidiary, Magnolia LNG LLC (Magnolia LNG). The binding lump sum turnkey (LSTK) EPC US$4.623 billion contract providing an installed EPC cost/tonne of US$525 is now valid through June 30, 2020.
The agreement incorporates the 0.8 million tonnes per annum (mtpa) capacity uplift for Magnolia, which has now received its Supplemental Final Environmental Impact Statement (FEIS) from the Federal Energy Regulatory Commission (FERC), for a total installed capacity of 8.8 mtpa. FERC is scheduled to complete its regulatory review of Magnolia's capacity uplift in April 2020.
- On December 27, 2019, LNGL expressed its support and gratitude for the recent approval of the amendments to Vietnam's Power Development Plan 7 (PDP7) by Prime Minister Nguyen Xuan Phuc. The amendments incorporate DeltaOE's proposed 3,200-megawatt LNG-to-power project into the PDP7, which had originally been planned as a coal-fired facility.
The approval clears the path for DeltaOE to negotiate and finalize a 25-year power purchase agreement (PPA) with EVN to underpin its LNG-to-power project in Vietnam's Bac Lieu Province, and concurrently, empowers LNGL and DeltaOE to work towards finalizing a binding sale and purchase agreement for delivery of 2 mtpa of U.S. liquefied natural gas from Magnolia LNG pursuant to the parties' non-binding memorandum of understanding.
Bear Head LNG:
- LNGL continues to progress Bear Head LNG and the Bear Paw Pipeline having recently received extensions on the deadlines for the projects' construction permits from the Nova Scotia Utility and Review Board. We are aggressively pursuing every opportunity to bring the Bear Head project to market and continue to address gas path solution opportunities with Canadian gas producers and pipeline companies.
To view the quarterly report, please visit:
https://abnnewswire.net/lnk/3RP195GG
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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