LNG Ltd. has extended the agreement with Gladstone Ports Corp. for its Fisherman’s Landing LNG project (FLLNG) site lease through Mar. 31, 2016, with an option for another year. The company also signed a nonbinding memorandum of intent (MOI) for gas supply with Tri-Star Petroleum Co. to supply the project from Tri-Star’s Queensland reserves.
The Tri-Star MOI involves FLLNG processing Tri-Star’s gas to produce 1.5 million tonnes/year (tpy) of LNG for 20 years, supporting FLLNG’s development of its first 1.5-million tpy liquefaction train. A letter of intent issued by PetroChina Australia in July 2012 to work with LNG Ltd. on securing gas supply to FLLNG remains valid.
FLLNG plans to restart construction to coincide with Tri-State’s first gas supplies, estimating the plant will take 3 years to complete. The company started construction in October 2009 but placed it on hold in March 2010 following PetroChina and Shell’s purchase of Arrow Energy Ltd., FLLNG’s gas supplier (OGJ Online, Mar. 17, 2010).
LNG Ltd. said it is in discussions with potential LNG buyers in the Asian market to ship up to the first train’s full 1.5 million tpy via tolling agreement and that no significant capital would be committed until binding agreements had been reached, targeting next year. No resources will be diverted from either LNG Ltd.’s Magnolia LNG or Bear Head LNG projects, the schedules of which remain unchanged, the company said.
LNG Ltd., which owns FLLNG outright, said it would consider all project financing options in parallel with the progress of binding agreements.
FLLNG comprises development of a 3.8-million tpy liquefaction plant. The company has received all necessary approvals for a 3-million tpy plant and will be submitting applications for the required approvals to increase production to the desired higher capacity.
LNG Ltd. plans to develop FLLNG in two stages, with Stage 1 comprising a 21-km gas pipeline, LNG processing train (Train 1), a 180,000-cu m LNG storage tank, and jetty-loading facilities for LNG ships with as much as 153,000 cu m of capacity. Stage 1 will have a guaranteed LNG production capacity of 1.5 million tpy and a design capacity of 1.9 million tpy.
Stage 2 will comprise a second LNG processing train (Train 2), which will double the LNG design capacity to 3.8 million tpy. No additional LNG storage tank capacity or jetty-ship loading work will be required for Train 2. The site has the potential for further expansion, subject to all necessary approvals.
Contact Christopher E. Smith at [email protected].