LNG raises new funds for Gladstone facility

But the company’s largest shareholder, John Fredriksen’s Golar LNG, decided not to participate in the share placement.
LNG raised $9.5m (US$7.1m) through the placement of 17m shares at 56 cents each, a discount of 12.5% on the average price over the previous five days.
In addition, the company’s directors exercised options that would provide almost $1m in available working capital.
The $10.5m raised from these two measures will mainly be used in the continuing development of the company’s wholly-owned Fisherman’s Landing LNG project at the port of Gladstone.
The “key building blocks” were in place to allow for final investment decisions later this year and “to realistically” target first LNG from Gladstone in late 2012, LNG managing director Maurice Brand said.
While Golar LNG chose not to participate in the share placement, it was continuing to provide “tangible support” to the project, Mr Brand said.
“Such support includes the secondment, at Golar’s cost, of highly-experienced technical, commercial and financial personnel and the direct participation in the progression of port and LNG shipping-related issues.”
Before the placement and exercising of options, Golar LNG’s stake in the company was 15.47% – it will now have fallen below 14%.
Arrow Energy, which owns 9.42% of LNG, subscribed for 2m shares in the placement in order to maintain its percentage shareholding.
Meanwhile, LNG said an agreement had been reached with Gladstone Ports Corp for the strategic placement of dredge material on the proposed location of its first LNG train at Fisherman’s Landing.
The mounding of this dredge material represents the initial stage of the foundation preparation for the project.
“The placement of this dredge material on the LNG train 1 site adjacent to the proposed LNG storage tank site will significantly assist in reducing future capital costs, shorten the overall construction schedule and facilitate further early site works later this year,” Mr Brand said.