30/07/2014 - 16:02

LNG Ltd taps market for $38m

30/07/2014 - 16:02

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LNG Ltd taps market for $38m

Liquefied Natural Gas Limited has secured $38.6 million from investors to fund its recently acquired Bear Head LNG project in Canada.

The company said its share placement was significantly oversubscribed by US and Australian institutional investors.

The shares were priced at $2.60 each.

The raising will fund the acquisition of the Bear Head project from Anadarko Petroleum Corporation for $US11 million, while also provide capital for a front-end engineering and design study as well as permits and regulatory approvals.

LNG Ltd is planning to develop Bear Head to into a 4 million tonnes per year LNG export facility.

Managing director Maurice Brand said the company was particularly keen to replicate the success of its Magnolia LNG project or use LNG Ltd's technical, engineering, technology and development expertise.

"Bear Head fits those criteria with the development plan based on the use of the company's OSMR LNG process technology which will deliver lower capital costs, improved energy efficiency and a shorter development and construction schedule," Mr Brand said in a statement to the ASX.

"Bear Head has considerable unlocked value and sunk costs that can readily be transformed into an LNG export facility."

He said he expected the project would create between 600 and 700 construction jobs and a permanent workforce of between 45 and 70.

At close of trade today, the company’s shares were up 14 per cent, at $3.73. 

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