LNG Limited Moves Closer to Gas Supply for Gladstone Project (Australia)

Liquefied Natural Gas Limited of Australia provided an update on the Fisherman´s Landing LNG project.

The company said that PetroChina International Investment Pty Ltd has received confirmation from the Australian Foreign Investment Review Board (FIRB) that it has no objection to PetroChina Australia’s purchase of Molopo Energy Limited’s  Queensland gas assets. Based on Molopo’s announcement the transaction now requires the approval of China’s National Development and Reform Commission, which Molopo expects by the end of September 2012.

The significance of the transaction for LNG Ltd is PetroChina Australia’s intention to deliver Molopo’s equity gas, under a proposed tolling arrangement, to LNG Ltd’s proposed 3 million tonne per annum Gladstone Fisherman’s Landing LNG Project, in the Port of Gladstone, Queensland (LNG Project).

As announced by LNG Ltd on 2 August, PetroChina Australia and LNG Ltd have entered into a Letter of Intent which states the intention of the parties to work together to secure sufficient gas for the LNG Project’s first LNG train, being a key requirement to enable LNG Ltd to proceed to a final investment decision.

Molopo’s coal seam gas permit areas (owned ~67% by Molopo and 33% by Mitsui) are located only 150 km from Gladstone. Based on a number of independent assessments, the Molopo permit areas have the capacity, subject to Mitsui’s agreement, to produce and deliver up to 65 terajoules/day of gas, representing ~50% of the minimum gas delivery volumes required for the LNG Project.

LNG Limites also said that Metgasco has announced that it has been granted:

o Renewal of its Petroleum Explorations Licences 13 and 16; and

o Its first Petroleum Production Lease.

As Metgasco’s largest shareholder (at 10.2%), LNG Ltd welcomes the NSW Government’s announcement of its new policies and regulation in relation to mining and coal seam gas exploration and development in NSW, which now provides appropriate clarity for Metgasco in the structuring and implementation of its future development plans.

The Company’s Managing Director, Mr. Maurice Brand, said “these are two important developments for LNG Ltd, in relation to its strategic investment in Metgasco and ongoing work to secure sufficient gas to assist its 100% owned Gladstone Fisherman’s Landing LNG Project proceed to a final investment decision”.

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LNG World News Staff, September 13, 2012; Image: LNG Limited