Liquefied Natural Gas Ltd (ASX: LNG) – the ASX's 'wonder-stock' of 2014 – has today announced a key regulatory approval for one of its two North American LNG tolling projects, Bear Head LNG.
Bear Head LNG is a wholly owned subsidiary of Liquefied Natural Gas Ltd and is actively pursuing the development of an eight million tonnes per annum (8mtpa) LNG tolling and export facility in Nova Scotia, Canada.
The facility will be connected to gas producing fields via pipeline and will condense natural gas in order for it to be loaded onto ships, before it is transported to lucrative international markets such as Asia.
Liquefied Natural Gas Ltd only recently purchased the Bear Head project from a subsidiary of Anadarko Petroleum.
However with the Nova Scotia Utility and Review board approving Bear Head's 8mtpa facility, it has now obtained 9 of the 10 necessary federal, provincial and local regulatory approvals for the project.
"The final approval required, from the Nova Scotia Environmental Board, is expected in the second quarter of 2015," the company said. After years of Bear Head remaining in a partially constructed state, it is now the only LNG project on the east coast of Canada with nine key regulatory approvals in place.
Bear Head LNG's Project Director, John Godbold said, "Bear Head LNG's preservation of the project's permits and approvals was critical in allowing us to make the progress we have achieved."
If all regulatory approvals continue to advance according to plan, the company believes Bear Head can be in operation by 2019.
Should you buy Liquefied Natural Gas Ltd shares?
Since I originally recommended readers buy Liquefied Natural Gas Ltd shares a year ago, its price is up well over 900%. However, as I've said many times before, future share price growth will boil down to management's ability to deliver on its promises in the coming six months. Everything is going well now, but if it doesn't deliver, it won't end well for investors choosing to buy now because the market will likely sell off the stock. Conversely if it can execute on its strategy, Liquefied Natural Gas Ltd shares will likely appear cheap today, in hindsight.
