LNG Limited told the ASX yesterday that Norwegian-based Golar LNG – the world’s largest independent owner of LNG transportation – has agreed to take up 23 million shares at 50c each – a discount to yesterday’s closing price of 70c.
LNG Limited was floated in late 2004 to develop small LNG plants designed to commercialise stranded gas fields in energy-deficient areas.
Last month, the company said in its half-year financial report that it was aiming for financial close of the Padang LNG project in Indonesia (formerly called the Senoro project) in July or August, and the Qeshm project in Iran in the last quarter of 2006.
Approvals at the Padang project have been delayed, as scope has been increased from one 750,000-tonne-per-annum processing train to two 850,000tpa trains. Feedstock and fuel for the trains will be supplied from the Senoro-Toili gas fields in Indonesia’s Sulawesi island. The targeted commissioning date is 2008.
The Qeshm project is intended to be a 940,000tpa plant producing LNG for sale to India or East Africa. The company’s wholly owned subsidiary, LNG International, is continuing to progress a patent application.
LNG Limited managing director Maurice Brand told the ASX yesterday that the deal would allow for the “joint development of a number of new LNG project opportunities.”
“The LNG Board believes that the financial strength of Golar, with total assets of $US2.2 billion, and its associated companies, together with the additional experience [Golar chief executive] Gary Smith brings to the board, augers well for the company’s future,” Brand said.
Golar, founded by Norwegian billionaire John Fredriksen, has spent $US1.1 billion ($A1.54 billion) buying seven LNG tankers since 2001 without first signing supply contracts.
