The West

Maurice Brand. Picture: Steve Ferrier/The West Australian.
Maurice Brand. Picture: Steve Ferrier/The West Australian.

UPDATE 3.30pm: LNG Limited has continued it seeming relentless run higher after securing $38.6 million in a placement for the acquisition and funding of the Bear Head LNG project in Canada.

The company said it had placed about 14.9 million new shares priced at $2.60 with US and Australian institutions.

LNGL managing director Maurice Brand said the company would aim to replicate its Magnolia project in Louisiana, whereby the company uses its small-scale gas liquefaction technology to toll-treat third-parties' gas.

The company's technology aims to deliver lower capital costs, improved energy efficiency and a shorter development and construction schedule than conventional gas processing facilities.

LNGL will pay Anadarko Petroleum $US11 million ($11.7 million) for Bear Head, which sits on a 255 acre site in Nova Scotia.

"Bear Head has considerable unlocked value and sunk costs that can readily be transformed into an LNG export facility," Mr Brand said.

"We are looking forward to working with local governments in developing this project that will have significant local economic benefits.

"We are anticipating the creation of 45 to 70 permanent direct jobs and 600 to 700 construction jobs."

LNG shares emerged from a trading halt this morning to reach a fresh all-time high of $3.935.

By the close, the shares had come off that peak but were still trading up 48 cents, or 14.77 per cent, at $3.73.

LNG shares were trading about 30 cents at the start of the year.

They have been on a steady rise ever since, last month topping a market capitalisation of $1 billion.

The West Australian

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