LNG Limited delays Magnolia FID

Perth-based Liquefied Natural Gas Limited has pushed back the final investment decision for its Magnolia LNG export project in Louisiana to the first half of 2019. 

In the company’s quarterly report, managing director and CEO Gregory Vesey stated that the company focused on efforts to sign long-term contracts for Magnolia LNG.

“While trade issues with the Chinese market impact our discussions, our negotiations with customers in other parts of the world remain strong. Earlier this year, we stated our target to make a final investment decision by the end of the 2018 calendar year,” Vesey said.

However, he noted that the statement had been made prior to the trade tensions manifested over the past months, which have caused headwinds for LNG transactions, pushing the Magnolia LNG final investment decision to the first part of 2019.

“There are varying opinions on how and when the trade issues with China will be resolved. Considering that, our communications with potential Chinese offtakers remain robust with the intent to complete agreements if trade tensions abate before Magnolia is fully sold out,” Vesey said.

The project is still expected to be on track to achieve production by late 2022 when experts predict a new wave of demand for LNG to hit the market.