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|LNG Limited Gives Up FID for Magnolia LNG PJ Within This Year|
|= US-China trade war affecting LNG negotiations =|
Australia's Liquefied Natural Gas Limited announced on 29th that has given up making a final investment decision (FID) for the US-based Magnolia LNG project before this year end and extended the date to early next year. The recent US-China trade war is having negative impacts on discussions with potential Chinese LNG buyers, which "have caused headwinds for LNG transactions," the Company explained how huge impacts the trade conflict is having on its LNG business.|
LNG Limited had started negotiations with Chinese companies early this year, before the US-China dispute emerges, aimed at making the FID by the end of this year. It shows its intention to continue talk with Chinese companies in preparation for resolution of the trade issues, but adding, "There are varying opinions" on the resolution date, having implied that there are still unclear factors regarding LNG deals with Chinese buyers.
The Company has inked an up to 2-mtpa gas liquefaction tolling deal with UK's Meridian LNG Holdings Corporation, but has yet to reach a contract with other buyers, hence forgone the project's FID and extended the final close date of the contract with Meridian several times — the last extension to December 31st, 2018 from September 30th, 2018 was decided in this September. This time's announcement to decide not to make the FID within 2018 is highly likely to cause further extension of the final close date.
The Magnolia project, which has already obtained the US government's approval, is ready for construction. The project plans to build an LNG production/export terminal with a production capacity of 8 mtpa through four 2-mtpa liquefaction units in Louisiana state.
|last modified : Mon 05 Nov, 2018 [11:42]|