Liquefied Natural Gas Limited announces a placement of 40 million fully paid ordinary shares in the capital of LNGL, which has raised A$174 million before Costs (Placement).
Use of Proceeds The proceeds of the Placement will be used towards:
• Commencement of an Early Works program at the proposed 8 mtpa
Magnolia LNG(MLNG)project following receipt of the time line established in the
Federal Energy Regulatory Commission (FERC) Schedule of Environmental Review(SER) announced on 30 April 2015.
Expenditures on the full Early Works program will commence upon the execution of binding offtake agreements for at least two LNG trains with a current design capacity of 4 mtpa and the finalization of pricing for the EPC Contract with The KBR/SKEC JV, with a view to ensuring first LNG is delivered to customers in
• Bear Head LNG’s ( BHLNG) pipeline infrastructure development work and front?end engineering design (FEED) or full 8 mtpa export facility, targeting a 2016 final investment decision (FID);
• Potentially, the acquisition and development of a third LNG project in North America; and
• General corporate purposes.
Managing Director’s Comments The Managing Director of LNGL, Maurice Brand, said “the capital raised will materially help us to progress the Magnolia LNG and
Bear Head LNG projects under development in North America.
Commencement in the second half of 2015 of an Early Works expenditure program 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 mtpa, 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.
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 mtpa export facility, maximizing use of the completed FEED for the
Magnolia LNG project, targeting FID in 2016”. “The Company has Aa also been investigating other potential opportunities where we can Leverage our mid ? scale LNG strategy and OSMR® technology into a third North American project”, said Mr. Brand