Bow tie for LNG not to be
LNG Ltd’s liquefied natural gas venture has taken another step back after talks with Bow Energy failed to produce anything except hot air.
Bow Energy Ltd ended talks on Monday that could have seen Bow become a partner in LNG Ltd’s $2.2 billion Fisherman’s Landing project.
LNG Ltd has been in talks with a number of prospective gas suppliers because Arrow Energy bailed out after a Shell takeover of the company in June.
The companies on Tuesday said they had ended discussions, which could have involved Bow feeding its large CSG reserves into the Fisherman’s Landing project in exchange for a stake in the operation.
LNG Ltd said in a statement that the potential transactions with Bow would not recognise the full value of the project site or the advanced nature of the project.
“Discussions with Bow Energy Limited have ceased. Based on recent developments in the coal seam gas industry in Queensland and our work on gas supply and strategic partner options, the directors consider that the nature of the potential transactions with Bow Energy Limited would not recognise the full value of the Gladstone LNG Project site or the advanced nature of the project.”
LNG Ltd says it will re-start construction once it secures gas supply and selects a strategic partner.