13/12/2013 - 12:53

LNG Ltd raises $11m for Magnolia

13/12/2013 - 12:53

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LNG Ltd raises $11m for Magnolia
An artist's impression of the completed Magnolia project.

Liquefied Natural Gas Limited has raised nearly $11 million to progress development at its Magnolia LNG project in Louisiana, while at the same time announcing it had appointed BNP Paribas as its project finance adviser for the $US2.2 billion project.

The Perth-based company said it had secured $10.85 million through a placement, which was priced at 31 cents per share.

Managing director Maurice Brand said the placement had introduced a number of new US based high-net worth investors and institutions to LNG Ltd’s share registry.

Foster Stockbroking acted as lead manager to the placement.

“These new shareholders, together with the solid support from shareholders who participated in the placement in August and our long-term and loyal existing shareholders, augurs well for the company’s future, and positions the company to continue to achieve a major increase in its valuation in the year ahead,” Mr Brand said in a statement.

Also today, LNG Ltd said it had appointed international financier BNP Paribas as its finance adviser for the $US2.2 billion first stage of the Magnolia project.

The project comprises an 8 million tonnes per year LNG export terminal, with the first stage encompassing two LNG trains, two storage tanks, a jetty and a shiploading facility.

LNG Ltd subsidiary Magnolia has previously signed an equity commitment agreement with New York’s Stonepeak Partners, providing $US660 million in stage one finance.

The company said it would work with Stonepeak and BNP Paribas to secure the remaining $US1.54 billion in debt financing for stage one.

Chief financial officer Norm Marshall said BNP Paribas brought an impressive project financing history and substantial capability to the Magnolia project.

BNP Paribas and the company have a relationship spanning over seven years with BNP Paribas having previously been appointed finance adviser for the company’s now suspended Fisherman’s Landing LNG project in Gladstone, Queensland,” Mr Marshall said.

“Over the term of the relationship with BNP Paribas they have developed a very close understanding of the company’s LNG industry business objectives and LNG project development philosophy.”

AT 12:30PM, WST, LNG Ltd shares were down 16 per cent, trading at 30.2 cents. 

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