Conoco head, analyst have say on Arrow's proposed plant

LOCAL businesses are pinning their hopes on a fourth LNG plant for Curtis Island, which a resource analyst believes is the safer option, but the question of whether to invest comes while others say there's a glut in the industry.

With the time delay between the three LNG projects already underway and the approvals still needed for Arrow Energy to go ahead, it's another opportunity for the rental market, construction companies and labourers to benefit from a fourth LNG plant on Curtis Island.

But with Australia Pacific LNG plant owners ConocoPhillips warning that supply could outstrip demand, a resources analyst says Arrow has only two options: to build its plant or to tag onto one of the existing plants.

Head of Conoco's commercial Australia operations Mike Nazroo said in the longer term, capacity additions looked set to catch up and even overtake demand with the number of new LNG proposals in places such as North America and South Africa.

Patersons Securities' resources analyst Matthew Trivett said not all globally proposed plants would go ahead.

"I don't think much gas will come out of the (United) States, but it's something these guys investing billions of dollars need to look at."

But he said it was prudent for Arrow to look at having its own plant as opposed to using the other plants.

"The decision might fall into whether there's enough capacity to accommodate what Arrow wants to do," he said.

"It all depends on the commercial terms and more importantly accessibility to the infrastructure."

Mr Trivett said even if Arrow chose to partner with another LNG site for a period of time, it still had government obligations to keep the approvals it gets validated.

"Getting towards 2015 and beyond, capital expenditure throughout central Queensland will be reviewed on whether it's beneficial to further develop all of the infrastructure currently underway," he said.

LNG projects

  • APLNG, worth $20b, project underway
  • GLNG, $20b (est), underway
  • QCLNG, $20b (est), underway
  • ALNG, $15b, coordinator general approval 10/09/2013

Topics:  arrow energy curtis island lng

Police, man threatening self harm, involved in ten hour siege

Police generic, crime scene.  Photo Tessa Mapstone / South Burnett Times

From 8.45pm trained negotiators spoke with a man at Oregon Ct.

'Best markets yet': Big sales at CBD markets: Photos

Jess Fairall and Krista Verlis at the Gladstone City Farmer's Markets.

The Gladstone CBD came alive today.

Santos sales boost softens blow of slumping oil price

CLAWING BACK: Santos reports a strong third quarter position off the back of bigger sales out of GLNG.

Revenue from LNG sales was $US227 million.

Local Partners

'Best markets yet': Big sales at CBD markets: Photos

THE smell of fresh flowers, fruit and vegetables waft through the Gladstone CBD for the second City Farmer's Markets today.

Your chance to win

Learn More

Former Split Enz front man Tim Finn finds new niche

Singer Tim Finn has written the music for theatre production Ladies in Black.

Musician finds his way to theatre

Barry Gibb is coming to Bluesfest 2017

FANS: Barry Gibb talks to a fan next to a cardboard cutout of his young self.

Aged 70, Gibb has re-launched his solo music career with a new album

Tim Finn headlining at Airlie Beach Music Festival

Music veteran Tim Finn from New Zealand will headline the Airlie Beach Music Festival.

Tim Finn: "It's the kind of festival that artists love"

The Summer that Melted Everything

See what happens when you invite the devil to town

Leonardo DiCaprio nearly drowned while filming

Actor Leonardo DiCaprio

Oscar winner almost drowned in Galapagos

Miranda Kerr to wed next year

Supermodel Miranda Kerr

Supermodel and Snapchat founder to wed

What's on the small screen this week

Georgia Love pictured in a scene from The Bachelorette finale.

TWO big reality shows wrap up this week while

Brad Pitt won't file legal response to divorce petition

Brad reportedly refused to send off the paperwork

Azealia Banks won't take legal action against Russell Crowe

Rapper Azealia Banks

Rapper drops legal action against Russell Crowe

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June

Push to sell homes that flooded Gladstone's market

Suburban housing in Glenvale, Toowoomba, Friday, October 17, 2014. Photo Kevin Farmer / The Chronicle

URGENT push to cash-up first home buyers investing in Gladstone.

New $200 million development will create 580 jobs

Cassie And Josh with baby Alfie and daughter Andee. They have bought at new Lennox Head development Epiq.

Majority of new positions will be given to Northern Rivers locals

Cherrabah's mega resort plans axed

PLANS for a massive development at Cherrabah have been scrapped.

What our mayor thinks of the new draft SEQPlan

The plan to use the innovative technology as part of the new Maroochydore CBD was cemented on site today when Mayor Mark Jamieson and Envac Asia Region president Chun Yong Ha formally signed the contract for the $20 million underground waste collection system.

New plan accommodates Sunshine Coast Council's vision for growth.