Sunshine Gas, Sojitz, plan Gladstone LNG plant

Dec. 11, 2007
Sunshine Gas Ltd., Brisbane, plans to build a $572 million (Aus.) LNG plant at Gladstone on Queensland's east-central coast. It is the third company to do so after separate, but similar plans announced earlier this year by Arrow Energy and Santos.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Dec. 11 -- Sunshine Gas Ltd., Brisbane, plans to build a $572 million (Aus.) LNG plant at Gladstone on Queensland's east-central coast. It is the third company to do so after separate, but similar plans announced earlier this year by Arrow Energy and Santos.

Sunshine signed a heads of agreement with Japan's Sojitz Corp. to jointly develop the 500,000 tonne/year plant using gas from Sunshine's coal seam methane project at Lacerta in Queensland's Surat-Bowen basin.

Supply from Sunshine's other prospects could also be added to the mix.

The proposed plant is smaller than those proposed by Arrow and Santos (1 million tonnes/year and 3-4 million tonnes/year respectively).

Sojitz will be operator with 70%, and Sunshine will hold 30%. Sojitz also is considering taking as much as a 20% interest in the Lacerta project.

Lacerta, in ATP795P, has 3P reserves of 1,097 petajoules, which includes 469 petajoules of 2P category and 44 petajoules in proved reserves.

Front-end engineering and design is timed to begin during first-quarter 2008, and the aim is to achieve first production in early 2012.