Arrow's CSM-LNG proposal gets approval

Arrow Energy and its partner LNG Ltd. have taken another step towards building the world's first CSM-to-LNG plant following Queensland's approval of the group's environmental impact statement.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Apr. 20 -- Brisbane-based Arrow Energy Ltd. and its partner Liquefied Natural Gas Ltd. of Perth have taken another step towards building the world's first coal seam methane (CSM)-to-LNG plant following Queensland's approval of the group's environmental impact statement (EIS) for the proposed Fisherman's Landing plant site near Gladstone, Queensland.

The approval completes the EIS process and enables the partners to progress to development approvals stage.

Five specific approvals are now needed to enable a final investment decision to be taken on the project by yearend.

The group also is working with the Gladstone Ports Corp. to obtain access to the site so that early preparation works can begin in October.

The overall plan involves construction of a 450 km pipeline from Arrow's CSM fields in the Surat basin of southeastern Queensland to Gladstone where LNG Ltd. will build the initial 1.5-million-tonne/year LNG plant at Fisherman's Landing. A second train of similar capacity also is planned.

Arrow will have primary responsibility for the CSM development, while LNG Ltd. will focus on the plant development.

Arrow can acquire up to 20% interest in the Fisherman's Landing facilities and also has an option to acquire a 50% stake in any other CSM-LNG plants subsequently developed.

The scheduled on-stream date for the first train is 2012.

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