In the past month alone, shares of Liquefied Natural Gas Ltd (ASX: LNG) have taken flight…
Click to Enlarge. Source: Google Finance.
And shares have bounced nearly 80% higher since hitting a low of $2.00 per share in early January.
Over the last 30 days or so, Liquefied Natural Gas Ltd has announced some important achievements for its goal of reaching financial close for its Magnolia LNG tolling facility in Louisiana, USA, by mid-2015.
These include the appointment of a second US-based non-executive director, an EPC (engineering, procurement and construction) Memorandum of Understanding with KBR and SK E&C Group, and the signing of a gas pipeline interconnect agreement with Kinder Morgan.
More recently it announced a major step forward in the Canadian regulatory process, for its Bear Head LNG tolling facility in Nova Scotia, Canada.
A slight rebound in the oil price has also helped ease investors' fears over Magnolia and Bear Head LNG's feasibility.
With the company's share price up 930% in the past year, the sustainability of the rally will come down to its ability to progress through to financial close for the Magnolia project by the end of this financial year.
If – some may think it's a big 'if' – they can reach financial close, I expect Liquefied Natural Gas Ltd's share price could go higher yet.
