LNGL Receives $21.34mn for LNG Marketing from China’s IDG Energy
Australia-listed Americas-focused Liquefied Natural Gas Limited (LNGL) has received the A$28.2mn ($21.34mn) in funding from China’s IDG Energy Investment Group as part of a share placement it announced earlier in the month, which it plans to use towards its LNG offtake marketing efforts, LNGL said June 13.
The share placement announced June 4 has now closed. It was for 56,444,500 ordinary shares at A$0.50 per share, which represents a 14.1% premium to the volume weighted average price of LNGL shares on the Australian Stock Exchange over the 30-trading day period ending June 1.
“Net proceeds from the share placement shall be used in support of ongoing liquefied natural gas (LNG) offtake market efforts, focused on Magnolia LNG, and for general corporate purposes,” LNGL said.
At the time of announcing the share placement, IDG Energy Investment’s president Liu Zhihai said: “We are excited to announce our investment in and support for LNGL and its Magnolia LNG project, which we see as one of the best positioned US liquefied projects to deliver needed LNG exports to Asia. IDG Energy Investment is particularly bullish on the long-term outlook for US-sourced LNG into China, and we will immediately begin working with LNGL to assist them in unlocking this market”.
LNGL’s portfolio includes the 8mn ton per year or greater LNG export terminal development in Louisiana, the Canadian 8mn ton per year or greater LNG development project and Bear Paw Pipeline Corporation, which is proposing to construct and operate a 62.5 kilometre gas pipeline to connect supply to Bear Head. And LNG Technology, which owns and develops the company’s mid-scale LNG business model OSMR LNG Liquefaction, which plans to deliver lower capital and operating costs, faster construction and improved efficiency relative to larger traditional LNG projects.
IDG Energy Investment is an investment holding company listed on the Stock Exchange of Hong Kong and affiliated with IDG Capital.