Liquefied Natural Gas Limited (LNGL) boss Maurice Brand will move from the company’s Perth headquarters to Houston next month to play a more hands on role in advancing its two North American projects.
The company is making significant progress moving its proposed Magnolia LNG project in Louisiana towards development and is also making strides at its Bear Head LNG project in Nova Scotia.
The Magnolia LNG project is 100 per cent owned by LNGL’s subsidiary Magnolia LNG and comprises the development of an 8 mtpa project on a 115 acre site.
Brand said the move to be permanently based in Houston would enable him to assist Magnolia LNG management achieve the project timetable so financial close can be sealed in 2015.
“I will be relocating to Houston at the end of April 2015,” he said.
“This will also enable me to work more closely with the Houston‐based Company CFO, Michael Mott on various corporate matters including the proposed dual share listing on ASX and NYSE, as well as with the Bear Head project team to achieve financial close for that project in 2016.”
The Magnolia project is being designed to comprise four LNG trains, each of 2 mtpa design capacity and guaranteed 1.7 mtpa firm production capacity.
LNGL said Magnolia LNG offtake negotiations with two parties were in the advanced stages with contract closings expected once the third parties sign their customer agreements and/or receive required board approvals, which would occur after 31 March.
Furthermore, Magnolia LNG is confident it will close bankable offtake agreements for the full 8 mtpa of capacity, with initial LNG production from train 1 forecast for late 2018.
Earlier this year, LNGL executed a pipeline agreement with Kinder Morgan Louisiana Pipeline to supply gas to the proposed Magnolia LNG plant.
Kinder Morgan is the largest midstream and the fourth largest energy company in North America, operating about 180 terminals and 80,000 miles of pipeline.
Following the recent signing of a memorandum of understanding between LNGL and SKEC and KBR for the formation of Magnolia’s engineering, procurement and construction joint venture, LNGL said commencement of an early works program would start in the second half of 2015.
The work will comprise initial detailed engineering and ordering of critical long‐lead equipment items ahead of the start of site work in early 2016.
“I am pleased with the solid progress by Magnolia LNG and the contribution being made by management and recently appointed staff,” Brand said.
Shares in LNGL were trading 3.9 per cent higher to $3.17.
Lauren Barrett can be reached at lbarrett@hartenergy.com
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