The Managing Director and Chief Executive Officer of Liquefied Natural Gas Ltd (LNG Ltd), Gregory M. Vesey, has said that he believes in the long-term global demand growth for natural gas, despite the challenging environment currently facing the industry due to an LNG supply/demand imbalance.
LNG Ltd expects the market to become short in supply beginning in 2021/2022, and is positioning itself to provide relief at the front part of this demand window, reflecting the advanced approval stage of its Magnolia LNG and Bear Head LNG projects. Combined, these projects can deliver up to 16 million tpy of liquefaction capacity into the market in this timeframe and up to 20 million tpy or more by 2024.
In a letter prior to the Annual General Meeting of the company’s shareholders, Mr Vesey said that LNG Ltd’s total cash position as of 30 September 2016 was AUS$61.7 million. LNG Ltd’s focus continues to be on the marketing of Magnolia LNG’s offtake capacity to progress this project through financing and into construction. The company also intends to finalise Bear Head LNG regulatory permitting, engineering, and the marketing of liquefaction tolling capacity, while preserving its existing liquidity through effective cash management.
Read the article online at: https://www.lngindustry.com/liquefaction/28102016/lng-ltd-ceo-predicts-market-upturn-post-2020/