Liquefied Natural Gas said that the agreement proves GPC’s ongoing support for the development of an LNG project at Fisherman’s Landing and understanding of the issues to be addressed by the company to proceed to construction.
The agreement is subject to satisfying the agreement conditions and receiving GPC shareholding ministers approval, it provides the company with security of the LNG project site, with Fisherman’s Landing being the only mainland area in the Port of Gladstone designated for an LNG project (with access to existing infrastructure and services).
Liquefied Natural Gas said that the agreement also provides significant confidence to potential gas suppliers and strategic partners in relation to the company’s LNG project site deliverability.
The major agreement condition, to be satisfied by July 1, 2011, is the procurement of gas supply as feedstock for the LNG project, following which the company has a further three months to satisfy any further conditions that may be outstanding at that time.
These further conditions include all necessary approvals to proceed to construction of the LNG project and, as the company is already well advanced in meeting these further conditions, the company expects to have them all satisfied in 2010.
Maurice Brand, managing director of Liquefied Natural Gas, said: “The signing of the agreement is a very important milestone for the company’s LNG project and demonstrates the excellent relationship with GPC, and the ongoing cooperation between GPC and the company to assist in facilitating the development of the Company’s LNG project at Fisherman’s Landing”.
Following the removal of the exclusivity provisions, in the Heads of Agreement with Arrow Energy, the company has been actively progressing, and is close to finalizing, the basis of its proposed gas supply plan for the company’s LNG project.
