Fisherman's Landing LNG signs pipeline expansion deal

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Mar. 25 -- Liquefied Natural Gas Ltd. has signed a pre-front-end engineering and design (pre-FEED) study agreement with Jemena to evaluate the expansion capacity of Jemena’s Queensland Gas Pipeline, to transport gas from the Wallumbilla Gas Hub to the Callide Gas Hub at Gladstone and onward to its planned 3 million tonne/year Fisherman’s Landing LNG liquefaction project. LNG Ltd. also received a petroleum facility license for Fisherman’s Landing from the Queensland Government Minister of Mines.

In February, LNG Ltd. received environmental approval from the Queensland government for a planned 20-km gas pipeline from the Callide gas hub to Fisherman’s Landing (OGJ Online, Feb. 25, 2011). The existing Queensland Gas Pipeline (QGP), owned and operated by Jemena, currently operates from Wallumbilla to Gladstone, running through the Callide gas hub. The Callide gas hub is where four new pipelines from the Surat basin and two new pipelines from the Bowen basin are planned to enter Gladstone to supply the proposed Curtis Island LNG projects.

The QGP pipeline is currently operating at close to full capacity between Wallumbilla and Gladstone, according to LNG Ltd., but may be expandable to transport up to an additional 483 MMcfd of gas supply from Wallumbilla to Callide, connecting to the Fisherman’s Landing LNG project’s planned pipeline of the same capacity.

LNG Ltd. expects the pre-FEED study to be completed in June and if satisfactory, and subject to agreement of acceptable terms with Jemena, would then move to a full FEED design study in parallel with discussions with potential suppliers for delivery of gas to either Wallumbilla or Callide.

The petroleum facility license awarded by Queensland is meant to ensure the following of acceptable and safe practices throughout the design, construction, and operation of Fisherman’s Landing, and was a condition to LNG Ltd.’s proposed 19.9% share placement to CNPC China Huanqiu Contracting and Engineering Corp (HQCEC). CNPC HQCEC says it would become LNG Ltd.’s largest shareholder upon completion of the placement.

Contact Christopher E. Smith at chriss@ogjonline.com.

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