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LNG Ltd halts US relocation

Australian developer to focus on securing offtake agreements for North American projects

Australian junior Liquefied Natural Gas Ltd (LNG Ltd) has stopped exploring the possibility of redomiciling to the US to focus on securing offtake agreements for its proposed North American export facilities.

LNG Ltd chairman Paul Cavicchi said the company was still committed to eventually moving to the US market.

"A US listing is the right step for LNG Ltd, but we must ensure we proceed deliberately and remain attentive to all shareholder expectations," he said in a statement.

The 4-million-tonnes-per-annum Magnolia LNG project is fully permitted, but LNG Ltd has been unable to secure enough offtake agreements to allow a final investment decision on the project.

The company said in January it had reached a non-binding agreement to potentially supply up to 4 million tonnes per annum to India's Vessel Gasification Solutions.

LNG Ltd is also developing the Bear Head LNG facility in Nova Scotia. The company acquired the site from a subsidiary of Anadarko Petroleum in 2014 in an $11 million deal which included 225 acres of industrial-zoned and deep-water acreage in Richmond County, Nova Scotia, as well as the foundations in place for two 180,000 cubic metre LNG tanks.