3rd Leg Trading

[C C]

The Liquefied Natural Gas Ltd share price just hit a multi-year low

ran out of post for yesterday
I hope we see 3.02 area
if it breaks below that we could see 2.96 ish

see NVG71yrD chart u can see what happening

It was another disappointing day on the market for the Liquefied Natural Gas Ltd (ASX: LNG) share price.

The liquefied natural gas developer’s shares touched on a multi-year low of 41 cents on Wednesday.

Why have its shares been sinking lower?

The oversupply of natural gas has arguably been the biggest reason for the decline.

In its recent annual report management warned that the oversupply of natural gas continues to negatively impact the business and has delayed the signing of off take agreements.

They went onto explain that as oversupply depresses prices, customers purchase for shorter terms and resist committing to long-term contracts at higher prices that would initiate new capacity construction.

Although LNG demand is growing fast due to being a clean and less expensive alternative to oil and coal consumption, the market is not expected to reach equilibrium until 2022.

Judging by the share price decline, investors appear to be focusing elsewhere because of this.


cc