LNG Limited welcomes new investor, raises $21.4m through share placement

  • Ports & Logistics
Magnolia LNG site rendering (Image courtesy of LNG Limited)

LNG Limited, the Australian company developing two LNG export projects in North America, has raised A$28.2 million ($21.4m) through a share placement agreement with the Hong Kong-listed investment holding company IDG Energy Investment Group.

The share placement will raise the proceeds through the issuance of 56,444,500 ordinary shares at A$0.50 per ordinary share, representing a 14.1 percent premium to the volume weighted average price of LNG Limited shares on the ASX over the 30-trading day period ending June 1, the company said in a statement on Monday.

Following close of the placement, IDG Energy Investment, which is an affiliate of  IDG Capital, will hold a 9.9 percent interest in LNG Limited.

LNG Limited said that the proceedings would be used in support of ongoing LNG offtake marketing efforts, focused on the Magnolia LNG export project, and for general corporate purposes.

“It is a great pleasure to welcome IDG Energy Investment to LNGL’s investor group,” said Greg Vesey, LNG Limited’s Managing Director and CEO.

Vesey went on to say that proceeds from this placement provide additional liquidity to LNG Limited, and the investment from IDG Energy Investment demonstrates a “high level of confidence in the company, and particularly a strong confidence in the fully permitted, shovel-ready Magnolia LNG project.”

“We are confident that our strategic relationship with IDG Energy Investment will provide LNGL with additional opportunities to market LNG volumes given IDG Energy Investment’s portfolio of infrastructure investments, including regasification interests,” Vesey said.

IDG Energy Investment’s President, Liu Zhihai said that the company sees the Magnolia LNG project as one of the best positioned U.S. liquefaction projects to deliver needed LNG exports to Asia.

“IDG Energy Investment is particularly bullish on the long-term outlook for U.S.-sourced LNG into China, and we will immediately begin working with LNGL to assist them in unlocking this market,” Zhihai said.

 

Related news

List of related news articles