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LNGL raises funds to accelerate North American LNG projects

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Hydrocarbon Engineering,


Liquefied Natural Gas Limited (LNGL) has announced the placement of 40 million fully paid ordinary shares in the capital of LNGL, which has raised $174 million before costs (placement).

The proceeds of the placement will be used towards:

  • Commencement of an Early Works programme at the proposed 8 million tpy Magnolia LNG (MLNG) 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 EPC Contract with the KBR/SKEC JV, with a view to ensuring first LNG is delivered to customers in late 2018.
  • Bear Head LNG’s (BHLNG) pipeline infrastructure development work and front-end engineering design (FEED) for a full 8 million tpy export facility, targeting a 2016 final investment decision (FID).
  • Potentially, the acquisition and development of a third LNG project in North America.
  • General corporate purposes.

“The capital raised will materially help us to progress the Magnolia LNG and Bear Head LNG projects under development in North America,” said the Managing Director of LNGL, Maurice Brand. “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 JV, 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,” Brand continued. “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”, concluded Brand.


Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/22052015/lngl-raises-funds-to-accelerate-north-american-lng-projects-833/


 

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