The project has been stalled since LNGL's original gas supplier, Arrow Energy, agreed to a A$3.4 billion ($3.1 billion) takeover by Shell and PetroChina. The two global oil giants have acquired Arrow and its extensive Queensland gas acreage to provide feedstock for their own proposed 8 million
mt/year LNG project on Curtis Island in Gladstone.
LNGL said in its quarterly results that it was advancing discussions with potential gas suppliers for the project, adding that "momentum has returned in these discussions" following the conclusion of the federal elections, clarification of the taxation position for coalseam gas to LNG projects and
recent federal environmental approval for two other projects at the Gladstone site.
In September, the company said it had acquired a share in Metgasco, which holds CSG acreage in New South Wales, and had signed a memorandum of understanding covering possible use of the gas for LNGL's export project.
That followed aborted talks with Bow Energy for the possibility of using its CSG supplies for the export project.
LNGL said Friday that it was conducting a feasibility study Metgasco over potential supply to Fisherman's Landing, adding that Metgasco's had the potential to supply sufficient gas for the approved 3 million mt/year production capacity of the plant.
It added that "in conjunction with advancing the joint study" with Metgasco, it was also in "ongoing discussions with other potential gas suppliers" for the project.
The company is also separately marketing its proprietary liquefaction technology, and said Friday that two parties had completed preliminary due diligence in that regard. "The company's objective is that these parties become strategic partners both in the marketing of the OSMR [liquefaction]
technology and in the development of the company's Fisherman's Landing LNG project," it added.
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