LONDON, November 2, 2016 /PRNewswire/ -- Liquefied Natural Gas Ltd (LNGL) is a developer of LNG liquefaction facilities and holds patent-protected technology that promises lower-cost, highly efficient LNG across many global markets. The company is finalizing offtake and awaiting a final DoE non-FTA export order to proceed before it can reach financial close at the Magnolia project. Binding EPC contracts mean that costs of development should be contained, while production (if sanctioned soon) could start up in 2022 as the global LNG markets tighten from the current glut. We believe uncertainty over the projects is a major reason behind the current share price, which has the potential to re-rate strongly if and when the project(s) are sanctioned. Our current risked DCF approach values LNGL at A1.3$/share ( US$3.9/ADR), but this could grow very materially. (Logo: http://photos.prnewswire.com/prnh/20130417/608168 ) If/when MLNG starts up, it should produce material cash flows that could push the shares to levels approaching or exceeding A$5/share ( US$15/ADR), based on DCF and peer multiples analysis. Our current valuation revolves around an estimation of the risks to project sanction, which the current share price implies are substantial. We risk our DCF-derived valuation to arrive at a current valuation estimate of A$1.3/share ( US$3.9/ADR), but if milestones towards project sanction are reached, it could drive shares much higher. We note that a FERC NTP could be issued before year-end, enabling the company to more aggressively pursue the other milestones (financing, tolling agreements). Click here to view the full report. All reports published by Edison are available to download free of charge from its website www.edisoninvestmentresearch.com. About Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.