Gladstone gas mining outlook

HOW many LNG projects are on the cards for Gladstone?

Most residents would probably say four; the three that are currently under construction by Bechtel and a fourth project by Arrow Energy, which is yet to begin construction as it goes through the steps leading to a final investment decision.

But as the region ponders those four huge projects, worth between $16 and $23 billion, many people are unaware a fifth project is also on the cards and its developer is confident of achieving a result.

Liquefied Natural Gas Limited, a Western Australian company, has been working to get its LNG plant up and running for a number of years.

Unlike the other four projects, LNG Limited would be constructed on Fisherman's Landing, the reclaimed area connected to the mainland near Yarwun.

The low-key nature of LNG Limited's build-up in Gladstone might seem strange, but there are some simple reasons many Gladstone residents have not heard much about it.

Firstly, LNG Limited's proposed facility would be much smaller than the other four across the water on Curtis Island.

It will produce three million tonnes a year, which sounds like a lot of LNG until you compare it with the other projects, which range between 7.8-9 million tonnes per year.

Secondly, the project is in its early stages.

In any case, there has been nothing secretive about the project. It just hasn't had the profile of its bigger neighbours.

The project made headlines in financial news pages over the past fortnight, with the announcement that PetroChina received approval from the Australian Foreign Investment Board to purchase coal seam gas from Molopo Energy's Queensland operations.

That was significant for LNG Limited's ambitions in Gladstone, because PetroChina will supply that gas to the facility.

In the meantime, LNG Limited general manager Maurice Brand confirmed on Friday that plans for the project were progressing.

For more about the Liquefied Natural Gas Limited proposal at Fisherman's Landing, keep an eye on The Observer.



Close observers of Gladstone's LNG industry will be aware of LNG Limited's ambitions in the area. The company began building at Fisherman's Landing in 2009, but had to stop in 2010 when an agreement with Arrow Energy fell over.

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