Edison Investment Research: Liquefied Natural Gas - Long-term value available 

Liquefied Natural Gas Limited (LNGL) ADRs have increased significantly in 2014, on the back of greater confidence in the Magnolia LNG project in Lake Charles and the proposed acquisition of the Bear Head LNG export project site. We review the Bear Head transaction (subject to standard closing) potential value and update our valuation, while taking the opportunity to assess the potential long-term value. While our current risked valuation of the company is below the ADR price, our analysis indicates long-term value well above. If LNGLY can deliver on its targets in Magnolia, there is still material upside, even if we discount the Bear Head acquisition, which could more than double the size of the company in time.

LNG Ltd is an ASX-listed company devoted to the development of LNG export terminals. The first project, Magnolia LNG, is planned to reach financial close in mid-2015 and start production in 2018. It has just acquired a further site in Nova Scotia, Bear Head LNG.

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