Extension allows project to step on the gas

THE third extension for LNG Limited to prove the CSG gas supply for the Fisherman’s Landing CSG to LNG project in Gladstone, Queensland has been granted by the Gladstone Ports Corporation.
LNG Limited’s new deadline is December 31, but this is subject to the company receiving written confirmation of access to a gas supply and a commercial tolling agreement with PetroChina International Investments.
The two companies signed a letter of intent in August to come to a commercial tolling agreement for PetroChina’s gas to be supplied to LNG Limited’s first LNG train.
According to a statement by LNG Ltd: “The first LNG train will have a guaranteed LNG production capacity of 1.5 million tonnes per annum.”
Fisherman’s Landing will be a 3mtpa project once a second train is added. Since the beginning of November 2012, when PetroChina acquired Molopo’s CSG assets for $41 million, LNG Ltd and PetroChina have been working to secure additional gas in order to continue the construction of the project’s first LNG train.
LNG Ltd’s major shareholder, China Huanqiu Contracting and Engineering Corporation (or CHCEC, with 19 per cent), is owned by PetroChina’s parent company. LNG Ltd proposed that CHCEC be the
engineering, procurement and construction (EPC) contractor for the first LNG train. However, before the commercial tolling agreement can be finalised, CHCEC needs to calculate the EPC price of the project.
Earlier this year, LNG Ltd sought to work with CSG company WestSide Corporation to source gas for Fisherman’s Landing but this was deemed too costly by the latter.
LNG had first asked for an extension until June 30, 2012, and then for another six months, to December 31, 2012.

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