PERTH (miningweekly.com) – ASX-listed Liquefied Natural Gas (LNG) has been given some leeway to secure other gas sources for its proposed Fisherman’s Landing LNG project, in Gladstone.
The company reported on Monday that it had extended the site agreement for lease with the Gladstone Ports Corporation until the end of March 2016, for a consideration of A$1-million, while the Queensland government also granted the company an extension until the end of December 2017 on the completion of construction for the Fisherman’s Landing project.
LNG said that the extension consideration reflected the existing option provisions with the Gladstone Ports Corporation.
LNG subsidiary Gladstone LNG was looking to develop a 3.8-million-tonne-a-year LNG plant at Fisherman’s Landing, to treat and liquefy gas into LNG for export. The company had already received all the necessary approvals for a three-million-tonne-a-year plant, and would submit applications to increase capacity at Fisherman’s Landing.
The A$1.7-billion project would be developed in two stages, with Stage 1 consisting of a 22 km gas pipeline, LNG processing train, storage tanks and ship loading facilities.
Stage 1 would have a 1.9-million-tonne-a-year production capacity, which would be increased to 3.8-million tonnes a year during Stage 2.
LNG has previously announced a primary gas supply agreement with PetroChina for the Stage 1 development, which would see PetroChina source gas from its own resources and from third-party resources to meet Stage 1’s minimum gas supply requirements.
LNG said on Monday that the company was continuing to investigate opportunities for other gas feedstocks to the Fisherman’s Landing plant, adding that discussions with potential LNG buyers supplying the Asian markets, were ongoing.
The company would not invest any significant capital into the Fisherman’s Landing project until binding agreements for gas supply and offtake were materially advanced.
The company said that it was also considering all funding options for the Fisherman’s Landing project, including strategic partnerships and the possible sale of a minority interest in the project.