Fisherman’s Landing Project Site Agreement Extended, Australia

Liquefied Natural Gas Limited announced that Gladstone Ports Corporation has extended the term of the Agreement for Lease, to 30 June 2014.

The Site Agreement:

• relates to the site for the Company’s wholly owned 3 million tonnes per annum LNG project, at Fisherman’s Landing, in the Port of Gladstone, Queensland (LNG Project); and
• includes as an annexure the agreed form of long term Site Lease, which includes a lease term of 25 years, plus 2 x 5 year term extension options.

The extension follows a meeting with the Port to update progress of the LNG Project and to outline the two gas supply paths being pursued. The two gas supply paths are:

• Continuing to actively cooperate with PetroChina in accordance with a Letter of Intent to use reasonable endeavours to negotiate and execute a commercial tolling agreement, for gas owned and arranged by PetroChina to be supplied to the Company’sfirst LNG train; and
• Negotiate directly with gas suppliers. Discussions and agreements are being progressed with two established gas supply parties.

The Company’s Managing Director, Mr Maurice Brand, said “we remain firmly of the view that the Fisherman’s Landing LNG Project provides a lower cost alternative to other LNG projectsin Australia and an opportunity for gas suppliers, with uncommitted gas resources, to access higher international gas prices. We will be using all endeavoursto secure such gasresourcesforthe LNGProject”.

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LNG World News Staff, May 31, 2013; Image: LNG Ltd