Fisherman's Landing LNG project receives pipeline approval

Liquefied Natural Gas Ltd. received environmental approval from the Queensland Department of Environment and Resource Management for its wholly owned subsidiary Gladstone LNG Pty. Ltd. to build a 21-km gas pipeline (PPL 161) from the Callide Infrastructure Corridor to its Fisherman’s Landing LNG liquefaction project at Port of Gladstone.

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Feb. 25 -- Liquefied Natural Gas Ltd. received environmental approval from the Queensland Department of Environment and Resource Management for its wholly owned subsidiary Gladstone LNG Pty. Ltd. to build a 21-km gas pipeline (PPL 161) from the Callide Infrastructure Corridor to its Fisherman’s Landing LNG liquefaction project at Port of Gladstone. The PPL 161 application will now proceed to the Department of Employment, Economic Development, and Innovation, which is responsible for issuing petroleum pipeline licences.

The pipeline will initially be capable of supplying 483 MMcfd to the 3 million tonne/year project, expandable according to the company’s needs and regulatory approvals. The company is currently pursuing gas supply for Fisherman's Landing from several coal seam gas companies, including Metgasco Ltd., in which LNG Ltd. holds a 5.04% stake.

On Sept. 24, 2010, LNG Ltd. signed a memorandum of understanding for the joint study of gas supply from Metgasco's CSG resource. The Fisherman's Landing LNG project was initially to be supplied with gas by Arrow Energy Ltd., but this supply became unavailable following Arrow’s acquisition by a joint venture between Shell and PetroChina.

LNG Ltd. said the existing Queensland Gas Pipeline and at least six other planned major gas pipelines, of which five have obtained environmental approval, will converge in the Callide Infrastructure Corridor supplying the LNG project. The six planned pipelines include the Blackwater Hub Gas Pipeline (Bow Energy), Central Queensland Gas Pipeline (Arrow Energy, AGL Energy), GLNG Pipeline (Santos, Petronas, Total, and Kogas), Queensland Curtis LNG Pipeline (BG Group, CNOOC), APLNG Pipeline (Origin, ConocoPhillips), and Surat-Gladstone LNG Pipeline (Shell, PetroChina).

In addition to this progress at Fisherman’s Landing, Santos-led Gladstone LNG gave final approval to its 7.8 million tpy project in January and Australia Pacific LNG Ltd. received environmental approval from the Australian government for its 14-15 million tpy plant earlier this week (OGJ Online, Jan. 19, 2011; Feb. 24, 2011). Gladstone LNG expects first production in 2015, with APLNG looking at 2014 or later.

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

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