Big step forward for Fisherman's Landing LNG
A COMPANY with plans to build an LNG processing plant at Fisherman's Landing has extended its site agreement with Gladstone Ports Corporation.
LNG Limited also has signed a non-binding memorandum of intent with Tri-Star Petroleum for the supply of gas.
Tri-Star, founded in Texas, has gas prospects and reserves in the Surat, Bowen, Georgina and Pedirka Basins.
LNGL managing director Maurice Brand said the lease with Gladstone Ports Corporation and agreement with Tri-Star were major steps towards re-starting development of the Fisherman's Landing site.
But he said there were a number of steps that needed to be finalised before the project could restart.
Construction began at the Fisherman's Landing site in 2009, but was placed on hold after the project's then-gas supplier, Arrow Energy, was acquired by PetroChina and Shell.
The project involves the development of a mid-scale, 3.8 mtpa liquefied LNG plant on the 24ha mainland Port of Gladstone site.
The plant would treat and liquefy gas into LNG for loading onto ships for export.
The company has received all necessary approvals for a 3 mtpa plant, and will be submitting applications for the required approvals to increase the LNG plant production capacity to 3.8 mtpa in the future.
The company plans to develop the project in two stages, with stage one featuring a 21km gas pipeline, LNG processing train, 180,000m3 LNG storage tank, and jetty/ship loading facilities for up to 153,000m3 LNG ships.
Stage one would have a guaranteed LNG production capacity of 1.5 mtpa and a design capacity of 1.9 mtpa.
Stage two would comprise a second LNG processing train, which will double the LNG design capacity to 3.8 mtpa.
The company said it also has begun discussions with a number of LNG buyers for supply of a potential 1.5 mtpa of LNG from the first train to the Asian market.
Construction of the project is expected to take three years.
The company announced its progress to the Australian stockmarket on Friday morning.