Liquefied Natural Gas Ltd (LNG Ltd) has announced a placement of 40 million fully paid ordinary shares in the capital of LNG Ltd, which has raised AUS$174 million before costs.
The proceeds of the placement will be used towards commencement of an Early Works programme at the proposed 8 million tpy Magnolia LNG project following receipt of the timeline established in the Federal Energy Regulatory Commission (FERC) Schedule of Environmental Review (SER) announced on 30 April 2015. Expenditures on the full Early Works programme will commence upon the execution of binding offtake agreements for at least two LNG trains with a current design capacity of 4 million tpy and the finalisation of pricing for the engineering, procurement and construction (EPC) contract with the KBR/SKEC iV, with a view to ensuring first LNG is delivered to customers in late 2018.
The proceed will also be used towards Bear Head LNG's pipeline infrastructure development work and front-end engineering design (FEED) for a 8 million tpy export facility, targeting a final investment decision (FID) in 2016.
LNG Ltd has also confirmed that the proceeds could potentially be used to fund the acquisition and development of a third LNG project in North America, in addition to general corporate purposes.
Maurice Brand, Managing Director of LNG Ltd, said: "The capital raised will materially help us to progress the Magnolia LNG and Bear Head LNG projects under development in North America. Commencement in the second half of 2015 of an Early Works expenditure programme at the Magnolia LNG project will comprise detailed engineering and ordering of critical long-lead equipment items to accelerate the site works schedule following receipt of the SER from FERC. Timing of the full Early Works expenditures is intended to align with Magnolia LNG's execution of binding offtake agreements for at least two LNG trains with a current design capacity of 4 million tpy, and the finalisation of pricing for the EPC contract with the KBR/SKEC Ai, and is consistent with our current plan to achieve first LNG in December 2018.
We are also very pleased with the progress of the Bear Head LNG project in Richmond County, Nova Scotia. Expenditures on the Bear Head LNG project, also commencing in the second half of 2015, will focus on access to feed gas supplies and FEED for a full 8 million tpy export facility, maximising use of the completed FEED for the Magnolia LNG project, targeting FID in 2016.
"The company has also been investigating other potential opportunities where we can leverage our mid-scale LNG strategy and OSMR® technology into a third North American project."
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/20052015/lng-ltd-raises-funds-for-lng-projects-787/