WA-based Liquefied Natural Gas Ltd (ASX: LNG) today announced that it has received further environmental approvals for its proposed development of an LNG export facility named Bear Head in Nova Scotia, Canada.
The Aussie wonder company has soared over a 1,000% in not much over a year after it received substantial support from North American investors in funding its plans to build LNG tolling facilities in Canada and Louisiana, USA.
The US project named Magnolia LNG is the flagship project and has received strong institutional support as LNG Ltd boasts that its methods and technologies in developing LNG tolling plants are superior to older large-scale LNG projects.
LNG processing projects such as those operated by Santos Ltd (ASX: STO) and Oil Search Limited (ASX: LNG), are part of an older wave that are just coming into production now with long lead times and huge development bills.
LNG Ltd expects to deliver its projects at a lower cost of capital on much faster timelines. Moreover, once built they will have lower operating costs and be more efficient thanks to LNG Ltd's advanced technology. The company recently raised $174 million from institutional investors to support the Bear Head and Magnolia projects' development.
The LNG Ltd story is an interesting one, but it looks as though the window of opportunity for retail investors has closed now in terms of making big profits. In fact the risk looks skewed to the downside as smart investors know the key to making out-sized returns is finding the LNG of tomorrow not today!
