Liquefied Natural Gas Ltd soars 13% in 2 days: Is it a bargain?

Shares of prospective gas company, Liquefied Natural Gas Ltd (ASX:LNG), are at it again.

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Shares of Liquefied Natural Gas Ltd (ASX: LNG) have today risen more than 7% on the back of no company-specific news.

Joining fellow oil and gas plays such as Senex Energy Ltd (ASX: SXY), Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL), LNG Ltd shares have rebounded strongly following turbulence in world markets which came as a result of concerns over Greece's potential Eurozone exit.

Who is Liquefied Natural Gas Ltd?

LNG Ltd isn't like any other ASX-listed oil and gas company. It is a prospective LNG liquefaction and tolling facility owner, with its flagships interests in Louisiana, USA, and Nova Scotia, Canada.

Basically, that means it's building facilities which will compress gas into LNG before loading it onto ships, enabling gas producers to send their product to foreign customers in a more cost-effective manner. Once chilled to negative 161 degrees, compressed Liquefied Natural Gas uses about 1/600th the space of Natural Gas.

Is it a good investment today?

Having climbed around 1,400% since the beginning of 2014, much of the raw upside in LNG Ltd's shares appears to have materialised. However, the next couple of months will be crucial for the company which is expected to make a number of key announcements for its Magnolia project, in Louisiana, and Bear Head, in Nova Scotia.

Since buying in early 2014, I continue to believe the medium to long-term upside for LNG Ltd is promising. However, until management update the market over the next quarter on its progress at either project my advice would be to hold off buying shares.

Motley Fool contributor Owen Raskiewicz owns shares of Liquefied Natural Gas Limited. Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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