What's Holding Up the Magnolia LNG Project?

It's hard to believe, but it's been five years since talk about the LNG project first started. I don't think that anyone expected that, five years down the road, we would not even be close to having the project get underway. Many of the people who invested in the project are asking some pretty tough questions.

Gregory Vesey is the CEO of LNG LTD, and he met with stockholders to try and answer some of their questions. According to Vesey, no one saw the soft market coming when all the plans were made, and according to Vesey:

"For the last couple of years, it's been a very slow market, no one's been interested in signing those contracts."

One shareholder basically responded by saying that that was the reason LNG gave about a year ago. Stockholder Tab Perkins told KPLC reporter Maranda Whittington:

"I don't see us being really one step ahead of where we were 12 months ago from today," said shareholder Tab Perkins. "I mean they are still saying the same thing. We still have zero contracts signed."

While Vesey says the market is too soft right now, he does feel somewhat optimistic about the deal, saying that he expects buyers to begin purchasing the much-needed contracts by the end of next year. Well, that's yet another year away from where we are now. Shareholders are saying that they will believe it when they see it.

Despite the pessimism on the part of the shareholders, Vesey says that he hopes actual construction can begin around 2019.