LNG - Liquefied Natural Gas

[piggybank]

A daily P&F update

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[Anmar]

4th June

Last week LNG - Liquefied Natural Gas was just over $0.250, this week it's just over $1.435, what is it going to be like when Gladstone LNG comes on stream later this year!

 

[Firemansam]

4th June

Last week LNG - Liquefied Natural Gas was just over $0.250, this week it's just over $1.435, what is it going to be like when Gladstone LNG comes on stream later this year!

yes, quiet a jump, but what is pushing up the stock. Any specific news apart from Gladstone?

 

[Anmar]

LNG - Liquefied Natural Gas has two plants under construction, one in Carolina USA called the Magnolia plant and the other being Gladstone. The Magnolia plant came on stream two weeks ago and should be shipping out LNG by now. I have been watching the SP for a time now, wondering why it stayed around $0.200 for so long, and all of a sudden it went gangbusters. Are we looking at a +$4.00 SP company in the short term?

Liquefield Natural Gas Limited (LNG) is a liquefied natural gas (LNG) focused company based in Perth, Western Australia. LNG owns an OSMR LNG process technology used to improve LNG plant performance. LNG has two key projects utilizing its technology namely FLLNG project in Australia and Magnolia LNG projects in USA.

 

[Anmar]

LNG - Liquefied Natural Gas has two plants under construction, one in Carolina USA called the Magnolia plant and the other being Gladstone. The Magnolia plant came on stream two weeks ago and should be shipping out LNG by now. I have been watching the SP for a time now, wondering why it stayed around $0.200 for so long, and all of a sudden it went gangbusters. Are we looking at a +$4.00 SP company in the short term?

Liquefield Natural Gas Limited (LNG) is a liquefied natural gas (LNG) focused company based in Perth, Western Australia. LNG owns an OSMR LNG process technology used to improve LNG plant performance. LNG has two key projects utilizing its technology namely FLLNG project in Australia and Magnolia LNG projects in USA.

Correction - The Magnolia plant is in Louisiana, not Carolina as previously stated.

 

[Firemansam]

Ok, thanks. I just jumped on this train a month ago. I'm an expat sitting in Sweeeden and just reentered the Aussie stockmarket after having been out for a few years. I split my gas investment between KAR and LNG, seems I should've followed my initial idea about LNG only. I think I'll double my investement in LNG. LNG is a big thing in Europe now, some big ports have finished installations for recieving LNG. A good long tem investment in my portfolio.

 

[Anmar]

Firemansam,

Thanks for letting us know where you are, here's one that might interest you, it's TALGA RESOURCES with a graphite mine in NE Sweden.

ABOUT TALGA
Talga Resources Limited (Talga) (ASX: “TLG”) is a diversified mineral explorer and developer with a portfolio of 100% owned graphite, iron, copper/gold projects in Sweden and gold projects in Western Australia.
The main focus is the development of its unique graphite and graphene deposits of northern Sweden utilising the advantages of world-leading high-grade deposits, low cost power, established mining infrastructure and short transport distance to high demand markets in Europe.

Talgo is moving up the leader board because of the high quality Graphite that it has found, plus Talgo has a means of benificating the product by a less costly method. see the web site.

 

[Firemansam]

Hi,
Thanks for the tip. It looks interesting, I'll look into the company's numbers soon and see what I can figure out. The mining boom in Sweden has lost its oumph lately. I put my money in the Canadian mining market at the moment (although I sell off in May as everyone else...). My portfolio is mainly bio-tech which is big here i Sweden. And some Saab shares. I saw just that they are going to build submarines - maybe for the Australian navy. The shares have jumped 70% since last October.

 

[Anmar]

Correction - The Magnolia plant is in Louisiana, not Carolina as previously stated.

Liquefied Natural Gas Ltd draws U.S. fund Baupost as major shareholder
Friday, June 13, 2014 by*Proactive Investors
Liquefied Natural Gas Limited’s (ASX:LNG) rapid progress with its Magnolia LNG export project in Louisiana has clearly drawn the big guns with world’s 11th largest hedge fund Baupost becoming a substantial shareholder with a 6.69% stake.

Notably, Seth Klarman’s Baupost also holds a 2.38% stake in Cheniere Energy (NYSEMKT:LNG), a US$15.6 billion market cap that expects to export its first LNG from the U.S. in 2015.
This investment should come as no surprise to investors who have been watching LNG Limited given its potential to mirror Cheniere’s stellar growth.

Cheniere had built its share price up from US$12 per share to the current US$65.68 after securing U.S. FERC approval for its Sabine Pass LNG export plants, which are expected to ship their first cargo of LNG in 2015.
Given that LNG Limited is among the top five liquefied natural gas export projects being progressed in the U.S. with first LNG expected in 2018, it appears likely that Baupost believes that it will follow in Cheniere’s shoes.
What is just as interesting is that Baupost, which is also Boston’s largest hedge fund with US$27 billion under its management, has been acquiring LNG Limited’s shares in on market purchases since acquiring an initial 5.75 million LNG Limited shares at a starting price of A$0.55.
Since then it has bought parcels of shares at prices ranging from A$0.80 to A$1.62 to bring its total shareholding up to 25.9 million shares.

Magnolia LNG

Magnolia LNG, located along the Calcasieu River near Lake Charles, is planned as a 8 million tonne per annum (Mtpa) liquefied natural gas export project comprising of four liquefaction trains, each capable of producing up to 2Mtpa of LNG (1.7Mtpa firm).
This will use LNG Limited’s OSMR ® LNG process technology with the company adopting a tolling business model whereby Magnolia LNG will provide liquefaction, storage and ship loading facilities to LNG buyers who pay a monthly fixed capacity fee, plus all LNG plant operating and maintenance costs.

The LNG buyers are also responsible for the supply and transportation of gas to the project site.
LNG Limited has tolling agreements covering 7Mtpa of the project’s planned 8Mtpa capacity and is currently focused on converting the first 4Mtpa to binding status in the first half of 2014.

The U.S. Federal Energy Regulatory Commission has formally accepted its filling application for Magnolia LNG with all approvals expected during 2015 in time for financial close in the middle of the same year.

A final investment decision will be made in late 2014.

Analysis

LNG Limited’s strong progress in progressing its Magnolia LNG project towards development is clearly being noticed by big hedge funds.

This is highlighted by Seth Klarman's Baupost, the world’s 11th largest hedge fund, gradually building up its interest in the company to a 6.69% in on market purchases.*

Baupost clearly likes what it sees in LNG Limited and U.S. export LNG projects given that it also holds a 2.38% shareholding in Cheniere Energy that represents 7.57% of its total portfolio.

Other luminaries that hold shares in LNG Limited include Daniel Loeb’s Third Point LLC.

Shares in the company have been on the upward swing, having risen 260% in the three months since 13 March 2014 ($0.48) to its high of $1.73 yesterday, and there’s still room to grow.

Proactive Investors continues to maintain a Speculative Buy recommendation with a 18 month price target of $2.25.

 

[frasderp]

Watched this one since about ~35c and jumped in at 60c.

Still holding and have had a few interesting days the past few weeks. That said however a number of big investment banks have jumped on board recently which is attracting a lot of attention.

We are now waiting on binding tolling agreements as the next big news. There are rumours/hints at another project as well, which is the other potential boost.

 

[peaceofmind]

despite the over 500% increase in 1 month, stock remains very highly speculative with questionable new technology. Conceptual at best. LNG developments in USA cost over $10bn to make, and they are claiming $2.2bn with their new technology. If their tech was so good you would see every major oil company go for it. But oil majors in Russia, Middle east, Europe, USA haven't used that technology in their lng plants. too risky.

i'll be surprised if this coy actually produces anything.

 

[pr1105]

Hi Guys,

Today 30th of june at 2:11pm LNG is trading 16.60% down from its opening price.

New natural price ceiling/support found? just simple speculative movement of a very volatile stock?

Thoughts...?

I hold LNG

 

[Firemansam]

Hi all,
Any news that I've missed lately? Up 10% yesterday and 5% so far today!

 

[piggybank]

Hi all,
Any news that I've missed lately? Up 10% yesterday and 5% so far today!

Speeding ticket on the day you asked this question - here is the link for the company's reply.
Up 42% on the week - not far off being a 10 bagger...

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[Anmar]

28th July

LIQUEFIED NATURAL GAS LIMITED TO ACQUIRE BEAR HEAD LNG PROJECT IN CANADA FOR US$11 MILLION
Highlights
● Substantial investment already made by seller in site previously proposed for 11.3 million tonne per annum (mtpa) LNG import terminal at Bear Head
● The Project’s assets include 255 acre (land and water) industrial‐zoned site in Richmond County, Nova Scotia, Canada with all project rights, approvals, LNG tank foundations and significant civil works
● LNGL proposes to develop the site for initial 4 mtpa LNG export project with potential for
future expansion**

 

[Firemansam]

Hi all,
back from a sailing holiday on the west coast of Sweden. Nice to be off line for a week, especially when one looks at the LNG share. Is it worth to keep buying, or? I'm up 200% already, but it seems to have more to give...

 

[RNI]

This stock is massive. It is valued at $10 in a few years in 2018, and now that it has a second project on the go in Canada (the latest one) will be even a higher value.

It will possibly just stay around these levels (or even a bit lower) while it is waiting on news of the Binding Toll Agreements due towards the end of the year, when it could very easily head for $4 00. Hold tight.

 

[RNI]

This will be at an even higher value now as they have recently announced they have acquired a second future gas refinery named Bear head, this site being in Canada.....then also with the FL (Fisherman landing) still being considered should they obtain a gas supply, that would potentially add even more value. With the stock at almost $4 now and awaiting the binding toll agreements before years end....not worth being out of this stock IMO.

 

[RNI]

LNG now in the ASX S&P200, very good news! Next big news due end of October, the bta's which will largely make this company much more secure.

 

[Firemansam]

Yes, fantastic news. Now it will be a lot more stable. I'm pleased I flogged off all other energy shares I had on the ASX and went all in LNG with an average of AUD 1.5. I'm really looking forward to this autumn, sorry, spring.