Oil macro analysis, page-779

London.
Liquefied Natural Gas's (LNGL) (OTC PINK: LNGLY) (ASX: LNG) Magnolia development is ahead of other US-based greenfield liquefaction plants in regulatory approvals, putting it in prime position for buyers/traders looking to take advantage of the expected rebalancing of the LNG market in 2022-23. With low capex/opex/gas prices, the project has the potential to be very lucrative for partners selling to Europe/Asia. As a result, we now expect LNGL to sign tolling agreements and move towards FID in 2018, with first production in 2023. We have updated our valuation. On a longer-term basis, this valuation should grow as the project is de-risked by tolling agreements and moves towards first LNG. We suggests substantial upside at this point, we note there is significant uncertainty on timelines and project delivery. However, we firmly believe the project is in a near unique position to deliver low cost LNG from US shale gas and we would expect our valuation to increase markedly as and when tolling agreements can be signed, FID taken and first LNG approaches.

Champee

Vancouver LNG conference 14/5/1918 ( Bear Head)

^GLTOH.