Innovative liquefied natural gas processing business Liquefied Natural Gas Ltd (ASX: LNG) this morning announced an update on the progress to completion of its flagship Magnolia LNG project in Louisiana, USA.
The market liked the update to send the stock up 4.2% to $3.19 and forward-thinking investors will be considering whether the business still presents as good value relative to its potential.
Today the business updated the market with news that it is moving closer to the key rider of completing bankable offtake agreements for the full 8 million tonnes per annum (mtpa) of LNG it expects to process at a fully operational Magnolia facility.
It also confirmed initial LNG production from Train 1 of the facility is forecast for late 2018. The facility will have 4 Trains in total, each capable of processing up to 2 mtpa of LNG. The business has several hurdles to negotiate and significant execution risk to manage before then including regulatory approvals and the physical construction of the facility.
LNG Ltd also confirmed that it may soon have a dual share listing on the NYSE as a consequence of significant US investor support and the North American location of two out of its three intended production facilities.
The stock's meteoric rise has been based on a business model that aims to deliver lower capital and operating costs, faster construction and improved efficiency relative to larger LNG processing projects.
One larger project is the Santos Ltd (ASX: STO) Gladstone LNG project due to become operational this year, while Oil Search Limited (ASX: OSH) already has a successful project operating out of Papua New Guinea.
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