LNG company extends lease for Fisherman's Landing site

A COMPANY looking at developing an LNG plant at Fisherman's Landing in Gladstone has extended its lease agreement for the site until 2016.

Liquefied Natural Gas Limited has extended its lease until March 31, 2016 at a cost of $1 million, and also has secured an extension from the Queensland Government for completion of construction until December 31, 2017.

The company is continuing to investigate opportunities for gas feed stock to the site, and discussions with potential LNG buyers supplying the Asia market are ongoing.

In a statement to the ASX, the company said no significant capital commitment to Fisherman's Landing would occur until binding agreements for gas supply and offtake were materially advanced.

The company will consider all project financing options and strategic partnerships, including the possible sale of a minority interest in Fisherman's Landing.

Managing director Maurice Brand said the extension of the site agreement with Gladstone Ports Corporation, and the extension of the dates for completion of construction associated with the proposed LNG facility, were steps towards restarting the project development.

Steps that need to be finalised before work begins include signing contracts for gas sales, offtake, engineering, procurement, construction and commissioning services, and securing project financing.

Fisherman's Landing is a proposed mid-size 3.8Mtpa liquefied natural gas liquefaction plant on a 24 hectare mainland site in the Port of Gladstone.