LNG project short of gas as big players snap up supply

LNG Limited managing director Maurice Brand says recent buying activity by the big players on Curtis Island is making it harder to get the company's $1.7-billion plant at Fisherman's Landing up and running.

The Perth-based company is attempting to develop a 3.8 million tonne per annum LNG facility at Fisherman's Landing, in comparison to the Curtis Island projects which range from 7.8Mtpa to 9Mtpa.

With start-up of the Curtis Island projects coming ever closer, the bigger players have been keen to snap up available gas supply in the market making less gas available for other users.

"Certainly if people have a project that is already under construction that makes it a lot more attractive for a potential gas source rather than us, because we're still pre-FID phase," Mr Brand said.

The company is trying to secure enough gas to re-start construction at Fisherman's Landing.

Mr Brand said it had two draft arrangements in place, but he could not commit to having enough gas to start work by the middle of the year.

"It's hard to say at the moment to be honest…I can't commit today," he said.

The company has a site arrangement on Fisherman's Landing with the Gladstone Ports Corporation until June 30.

Fisherman's Landing LNG:

  • Capacity: 3.8Mtpa (two trains)
  • Cost: $1.7 billion
  • Re-start of construction due this year