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  #161  
Old 12-04-2015, 05:32 PM
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This was on the Motley Fool website, so take it with a grain of salt. They either pump or bash certain stocks all the time. This one is a bash but I think there is a lot in there that is accurate.



The Liquefied Natural Gas Limited (ASX: LNG) (“LNGL”) share price has more than halved since the start of this year, although shares have risen 0.9% or 1 cent today to $1.19.
The major factor playing havoc with the share price is the falling US WTI benchmark oil price, which slipped below US$40 a barrel overnight. Oil is in a state of massive global oversupply after thousands of shale oil and gas wells were brought online over the past few years, particularly in the US.
The global LNG market is also expected to be in oversupply as 15 processing ‘trains’ have recently been completed in Australia and Papua New Guinea from the likes of
Despite the soaring number of drilling rigs sidelined, oil prices continue to fall, with oil companies focusing on the most productive fields and lowering production costs substantially.
For LNGL, all this has major consequences. On the up side, it’s likely to reduce their input costs (buying gas from US suppliers) for its under-development Magnolia LNG export processing plant, as well as its Canadian Bear head LNG project.
The problem is that falling oil prices will impact on gas prices, which are usually linked to the underlying oil price. That could see forecast revenues plunge and make both LNG projects commercially unviable.
Already oil and gas producers UK-listed BG Group, Brazil’s Petronas and US-based Excelerate Energy have all reportedly deferred plans for LNG projects, with Excelerate stating that its project no longer met its financial criteria necessary to move forward.
AS international LNG prices fall, the economics of exporting North American gas into global markets worsens, and could eventually mean that US LNG exports are commercially unviable.
LNGL has also failed to hit a number of milestones for its Magnolia LNG project, and a number of milestones have blown out. The US$4.35 billion engineering, procurement and construction (EPC) contract recently signed with KBR-SKE&C joint venture was originally targeted for the fourth quarter of 2014 according to fund manager, Totus Capital.
LNGL still needs to sign legally binding tolling agreements for 75% of Magnolia’s 8 million tonnes per annum (mtpa) capacity, with just a 2 mtpa agreement with Meridian LNG so far.
Foolish takeaway
LNGL is looking increasingly less likely to get its flagship Magnolia project into development, let alone any of its other LNG projects. Unless the company can show some solid progress, the share price could slide ever lower.
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  #162  
Old 12-04-2015, 08:32 PM
Baychamp1 Baychamp1 is offline
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Quote:
Originally Posted by redaddiction View Post
This was on the Motley Fool website, so take it with a grain of salt. They either pump or bash certain stocks all the time. This one is a bash but I think there is a lot in there that is accurate.



The Liquefied Natural Gas Limited (ASX: LNG) (“LNGL”) share price has more than halved since the start of this year, although shares have risen 0.9% or 1 cent today to $1.19.
The major factor playing havoc with the share price is the falling US WTI benchmark oil price, which slipped below US$40 a barrel overnight. Oil is in a state of massive global oversupply after thousands of shale oil and gas wells were brought online over the past few years, particularly in the US.
The global LNG market is also expected to be in oversupply as 15 processing ‘trains’ have recently been completed in Australia and Papua New Guinea from the likes of
Despite the soaring number of drilling rigs sidelined, oil prices continue to fall, with oil companies focusing on the most productive fields and lowering production costs substantially.
For LNGL, all this has major consequences. On the up side, it’s likely to reduce their input costs (buying gas from US suppliers) for its under-development Magnolia LNG export processing plant, as well as its Canadian Bear head LNG project.
The problem is that falling oil prices will impact on gas prices, which are usually linked to the underlying oil price. That could see forecast revenues plunge and make both LNG projects commercially unviable.
Already oil and gas producers UK-listed BG Group, Brazil’s Petronas and US-based Excelerate Energy have all reportedly deferred plans for LNG projects, with Excelerate stating that its project no longer met its financial criteria necessary to move forward.
AS international LNG prices fall, the economics of exporting North American gas into global markets worsens, and could eventually mean that US LNG exports are commercially unviable.
LNGL has also failed to hit a number of milestones for its Magnolia LNG project, and a number of milestones have blown out. The US$4.35 billion engineering, procurement and construction (EPC) contract recently signed with KBR-SKE&C joint venture was originally targeted for the fourth quarter of 2014 according to fund manager, Totus Capital.
LNGL still needs to sign legally binding tolling agreements for 75% of Magnolia’s 8 million tonnes per annum (mtpa) capacity, with just a 2 mtpa agreement with Meridian LNG so far.
Foolish takeaway
LNGL is looking increasingly less likely to get its flagship Magnolia project into development, let alone any of its other LNG projects. Unless the company can show some solid progress, the share price could slide ever lower.
So we have 25 % locked up in toll agreements, still early in pre construction, a lot of negative speculation in this article, probably from a short seller trying to push the stock price down thru fear & unvalidated speculation. I'm more inclined to believe the stock is near bottom & will move up. Just my opinion.

Last edited by Baychamp1; 12-04-2015 at 08:46 PM.
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  #163  
Old 12-04-2015, 08:59 PM
Baychamp1 Baychamp1 is offline
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The Chevron CEO (John Watson) one of the most respected CEO's in the industry,has a geat article on their website concerning their LNG export facilities and the future demand for exported LNG .

Last edited by Baychamp1; 12-04-2015 at 09:42 PM.
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  #164  
Old 12-04-2015, 09:37 PM
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Quote:
Originally Posted by Baychamp1 View Post
So we have 25 % locked up in toll agreements, still early in pre construction, a lot of negative speculation in this article, probably from a short seller trying to push the stock price down thru fear & unvalidated speculation. I'm more inclined to believe the stock is near bottom & will move up. Just my opinion.
I agree. But it's looking grim when the price of LNG product itself has dropped nearly 50% in the last year. Who is going to sell or ship product at a loss?
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  #165  
Old 12-04-2015, 09:59 PM
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Oil production is very competitive at this time, but we have a surpluss of cheap natural gas that works to our advantage
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  #166  
Old 12-06-2015, 09:48 PM
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Magnolia LNG spokesperson was at the Dec. 3 CPPJ (police jury) meeting to give an update, see it on Suddenlink channel 5 in Lake Charles. Highlights of presentation - FEIS was completed Nov 13, Possible sight clearing end of 1st qtr. 2016, expect an update on increasing number of employees needed for this facility, he also indicated they were making progess on securing buyers for the other 75% that's not already locked up. Completion in 2019.

Last edited by Baychamp1; 12-06-2015 at 10:02 PM.
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  #167  
Old 12-07-2015, 07:25 PM
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I'm still holding out on this one. Bad gut feeling. But i'm watching it..
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  #168  
Old 12-07-2015, 07:30 PM
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LNG.AX is down 15 cents right now on the Australian market. LNGLF will follow suit tomorrow when the market opens. It's like clockwork.
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  #169  
Old 12-18-2015, 04:09 PM
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Another LNG facility in the works.

The Trading Floor (Investing, Stocks, Bonds): Another LNG facility for Lake Charles - SaltyCajun.com
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  #170  
Old 04-08-2016, 07:27 PM
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Does anyone think this project will get scrapped? I would love to buy a lot at these prices but the global LNG market is in the dumps.
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  #171  
Old 04-11-2016, 12:38 PM
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Originally Posted by redaddiction View Post
Does anyone think this project will get scrapped? I would love to buy a lot at these prices but the global LNG market is in the dumps.
I've done well with it in the past but, man, $.36 is LOW! If anyone does jump on board, I hope it bounces back to $3.00 again!
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  #172  
Old 04-11-2016, 02:41 PM
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I sure wish it would go to $5
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