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Liquefied Natural Gas attracts $28 million to advance its projects

Developing an 8+ million tonnes per annum (mtpa) LNG export terminal in the Port of Lake Charles, Louisiana, U.S.
LNG ship
Feed gas supply will come from the highly liquid US Gulf Coast gas market

Liquefied Natural Gas Ltd (ASX:LNG) (LNGL) is raising $28.2 million via the placement of shares at 50 cents each to IDG Energy Investment Group Ltd (HKG:0650), a Hong Kong based company.

Interestingly, the placement is at a 14.1% premium to the volume weighted average price of LNGL shares on the ASX over the 30-trading day period ending 1 June 2018 of 44 cents.

Net proceeds from the share placement will be used for ongoing liquefied natural gas (LNG) offtake marketing efforts, focused on Magnolia LNG.

Magnolia LNG is a planned 8+ million tonnes per annum (mtpa) LNG export terminal in the Port of Lake Charles, Louisiana, U.S.

High level of confidence in LNGL’s project

LNGL managing director and chief executive officer Greg Vesey said: “Proceeds from this share placement provide additional liquidity to LNGL, and the investment from IDG Energy Investment demonstrates a high level of confidence in our company, and particularly a strong confidence in the fully permitted, shovel ready Magnolia LNG project.

“We are confident that our strategic relationship with IDG Energy Investment will provide LNGL with additional opportunities to market LNG volumes given IDG Energy Investment’s portfolio of infrastructure investments, including regasification interests.”

Patented OSMR® LNG process technology

Magnolia LNG project plan includes development of four LNG production trains of 2 mtpa each, using the company’s wholly owned and patented OSMR® LNG process technology.

Feed gas supply will come from the highly liquid US Gulf Coast gas market via several gas suppliers.

Gas supply will be delivered to the site via the Kinder Morgan Louisiana Pipeline (KMLP).

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Liquefied Natural Gas Ltd Timeline

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