Liquefied Natural Gas says Magnolia LNG secured $1.5b commitment

Company News

by Jessica Amir

Liquefied Natural Gas Limited (ASX:LNG) has secured a $1.5 billion commitment from Stonepeak Partners to fully fund the Magnolia LNG equity requirement.

The Magnolia LNG project involves developing a LNG export terminal in Louisiana, USA.

Liquefied Natural Gas says the funding involves fixed coupons with pay-in-kind provisions during construction, that lowers project cost of capital, from the previous agreement.

Stonepeak’s commitment is a redeemable Preferred Interest in the Magnolia LNG project, having a 12-year tenor from financial close.

The company says announcement signals a strong message to the LNG industry about the shared confidence and advantages of the Magnolia LNG project.

Liquefied Natural Gas Limited owns 100 per cent of the common interest in Magnolia pre and post financial close.

Shares in Liquified Natural Gas (ASX:LNG) are trading 32.14 per cent higher 74 cents.
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.