LNG Ltd. lets contracts for Gladstone LNG plant

LNG Ltd. signed an engineering and construction contract with SK Engineering & Construction for the Fisherman's Landing LNG project in Gladstone, Queensland, based on CSM feedstock.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Aug. 4 -- Perth-based LNG Ltd. has signed an engineering and construction service contract with South Korea's SK Engineering & Construction for the Fisherman's Landing LNG project in Gladstone, Queensland, based on coal seam methane (CSM) feedstock.

The agreement provides all front-end engineering and design, detailed engineering, and prerequisite construction services for the LNG plant through financial close, which is expected in early 2009.

In addition, SKEC and Laing O'Rourke Australia Construction are expected to form a joint venture to enter into a bankable engineering, procurement, and construction contract with LNGL to be executed by December.

O'Rourke already has an existing preconstruction services agreement with LNGL for the LNG storage tanks, and the proposed new JV should provide a smooth transition from the FEED, detailed engineering, and preconstruction phases into the full EPC phase early in 2009.

LNGL is working with Arrow Energy Ltd., Brisbane, to build a 1.5 million tonne/year LNG plant in Gladstone, which is scheduled to come on stream in 2011. The plant's gas source will be CSM.

Arrow has primary responsibility for the CSM supply, and LNGL will handle the LNG development project.

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