Oz LNG Limited Appoints Voluntary Administrators

Troubled Australian LNG project developer LNG Limited (LNGL) has appointed PricewaterhouseCoopers Australia as voluntary administrators of the company on April 30, it said on May 1 in a statement.  

“The voluntary administrators are reviewing the company’s business and assets and will be in contact with creditors shortly,” the company said. LNGL also said that all directors of the company resigned on April 30 immediately following the appointment of administrators including Gregory Vesey as CEO.

The development comes soon after Singapore’s LNG-9 withdrew its US$75mn offer to acquire LNGL. The company was also unable to secure bridge financing from First Wall Street Capital Corp. Mid-April, LNGL had said that LNG-9 remained interested in acquiring all or a material part of its assets, and the two companies would continue working together to find a mutually acceptable transaction structure.

In addition to the ongoing discussions with LNG-9, LNGL said it was also working with other parties on strategic alternatives to supplement existing cash on hand that would improve its working capital position and sustain its operations. Its US subsidiary already received a paycheck protection programme loan of US$388,552 from the US Small Business Administration.

LNGL is developing the 8mn mt/yr Magnolia LNG export terminal in Louisiana and the 8-12mn mt/yr Bear Head LNG terminal in the eastern Canadian province of Nova Scotia, as well as the 62.5-km Bear Paw pipeline to connect gas supply to Bear Head. The projects now seem to be in doubt with LNGL going into administration.