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LNG Ltd well placed for next wave of US LNG exports

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Reuters are reporting that Liquefied Natural Gas Ltd's US and Canadian projects are well placed to meet the next wave of LNG exports that will be needed in the early 2020s.

LNG Ltd has two fully developed export projects – Magnolia in Louisiana and Bear Head in Nova Scotia. Each will cost about US$5 billion, not including financing costs, and have the capacity to export 8 million tpy of LNG.

In 2016, global LNG prices fell to their lowest levels since at least 2011, as new US and Australian export terminals boosted supplies over demand.

LNG prices would likely remain soft for another few years as more export terminals enter service.

In the US, five export facilities will join Cheniere Energy Inc's Sabine Pass LNG export project in Louisiana by 2019, making the country the third biggest LNG exporter in the world behind Qatar and Australia.

LNG Ltd would likely finish selling remaining capacity at the Magnolia project by the end of 2018, which would put the plant's first liquefaction train on track to enter service around the 2022 – 2023 timeframe.

LNG Ltd, which is considering a US stock market listing, has already sold 2 million tpy of capacity to Meridian LNG to supply a proposed import project in the UK.

Magnolia has an advantage over other companies looking to build new US LNG export terminals because it is already fully permitted and smaller than other projects.

Both Magnolia and Bear Head are designed to have four 2 million tpy liquefaction trains.

Other new US LNG export projects looking for customers include Tellurian Inc's proposed 26.3 million tpy Driftwood in Louisiana, Venture Global's 10 million tpy Calcasieu Pass and 20 million tpy Plaquemines Parish in Louisiana, and NextDecade Corp's 27 million tpy Rio Grande in Texas.

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