Australia-based Liquefied Natural Gas Ltd., parent company of the Magnolia LNG liquefaction terminal planned for Lake Charles, is considering redomiciling to the U.S. to increase its stock value, The American Press reports.
John Baguley, Magnolia LNG chief operating officer, says the company’s stock value is much lower than other planned U.S. terminals because of the company’s Australian listing.
LNG Ltd., which trades on the Australian Stock Exchange, is considering listing as a U.S. company on either the New York Stock Exchange or NASDAQ. The company aims to make a decision based on financial viability by the end of the year following a shareholder vote, Baguley says.
The announcement comes less than a month after the company canceled plans to build an export facility in Queensland, Australia, because it couldn’t secure a gas supply. LNG Ltd.’s two remaining projects—Magnolia and Bear Head LNG in Nova Scotia—are in North America, with Magnolia being the furthest along.
Baguley says having an Australian listing when all the company’s competitors, like Driftwood and Venture Global, are listed in North America has hurt LNG Ltd.’s stock valuation. He says investors in North America and elsewhere may also be hesitant to invest in an Australian company.
Magnolia is one of about eight natural gas export facilities planned for Southwest Louisiana—only one of which, Cameron LNG, is under construction.
