PERTH (miningweekly.com) – ASX-listed Liquefied Natural Gas (LNG) has signed a strategic alliance agreement with fellow-listed Oil Basins to jointly investigate the development of the Kimberley LNG project, in Western Australia.

The proposed Kimberley LNG project evaluation would cover natural gas, coal seam gas and shale gas in the Canning basin of Western Australia, for the purposes of developing a production facility using feedstock from Oil Basins.

Oil Basins would have the right to invest in any LNG project up to a maximum of 20% on an at-cost basis, however, this could be increased to 30% if Oil Basins delivered a certified proven and probable gas reserve of at least one-trillion cubic feet (19,4-million tons), within four years of work programmes starting at the field.

LNG MD Maurice Brand said on Tuesday that the investment in Oil Basis was consistent with the company’s integrated LNG project strategy.

He noted that the company needed to be fully integrated with the gas resource for its proposed LNG projects to assist influence or control the project development, in order to mitigate development risk.

“The company continues to research three locations around Australia where the potential exists for LNG projects, using conventional and unconventional gas supply. The Kimberley region is one such location that could benefit from the company’s business model and liquefaction technology.”

In addition to the agreement, LNG has also participated in a recent share placement by Oil Basins and now holds a 4,9% shareholding in the company.

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