Shares in Perth company Liquefied Natural Gas Ltd have soared after it signed a conditional US$660 million funding agreement with a private equity group for a proposed project in the United States.
US investment firm Stonepeak, established in 2011 by former Macquarie Bank executives Michael Dorrell and Trent Vichie, has agreed to provide the full $US660 million of equity finance needed to develop LNG Ltd's Magnolia gas project in Louisiana.
In exchange, Stonepeak will acquire a stake of about 50 per cent in the gas plant.
The investment is conditional on LNG Ltd locking-in about US$1.54 billion of long-term project debt funding.
The project involves construction of an 8 million tonne per annum LNG plant in Louisiana, at an estimated cost of $US2.2 billion ($A2.4 billion).
It is dependent, among other things, on the US government approving the export of gas.
If the project achieves financial close, Stonepeak will pay a US$66 million success fee to LNG Ltd.
LNG managing director Maurice Brand said in a statement the building blocks for its Magnolia project were coming together quite quickly.
It has also signed an agreement to supply gas to Panama and other countries covered by a US free trade agreement.
The company's shares were up 7 cents to 28 cents at close of trade. Just one month ago, they were at an all-time low of 12 cents.