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LNGL cancelled Fisherman’s Landing LNG project
2017/05/31
LNGL has decided to give up its Fisherman’s Landing LNG project after its many years efforts for securing the long-term economic gas supply that would be needed to proceed with project construction were unsuccessful.
Australian Liquefied Natural Gas Ltd. (LNGL) announced that it has decided to give up its Fisherman’s Landing LNG project and no longer fund the costs associated with maintaining the 3 MMT/Y LNG project at the Port of Gladstone in Queensland, Australia as it is completing efforts to relinquish the site to the Gladstone Ports and notify other relevant regulators.
“The closure of the Fisherman’s Landing LNG Project was not an easy decision by the Company. However, after many years without success in securing the long-term economic gas supply that would be needed to proceed with project construction, we made a strategic decision to close the project,” Greg Vesey, CEO of LNGL said.
Fisherman’s Landing LNG planned to be fully rely on the other parties’ feed-gas resources as its promoter, LNGL doesn’t have owned conventional gas or coal-seam gas resources for feeding the project.
LNGL had to secure enough gas to supply the project and will be competing with three other LNG projects at Gladstone, as well as with domestic gas users in Queensland and neighboring New South Wales, where a supply shortage is expected over the rest of this decade.
“Fisherman’s Landing project has been suspended since 2011 when Australia’s Arrow Energy announced that it has acquired Bow Energy as the transaction was a substantial setback for the LNGL which had previously held unsuccessful talks with Bow to secure feed-gas for its proposed Fisherman's Landing project,” Mosi Nabi, Senior Consultant at Global LNG Info said, adding that “LNGL had also signed a feed-gas supply agreement with Arrow that has been terminated after Arrow acquired by Shell and PetroChina for A$3.4 billion in May 2010.”
Last month, Australian government confirmed that it will impose export controls “when there is a shortage of gas in the domestic market” as it has taken the decision to intervene in the market because Australia’s LNG producers had failed to give the government concrete guarantees on domestic supply.
“It is unacceptable for Australia to become the world’s largest exporter of liquefied natural gas but not have enough domestic supply for Australian households and businesses.”
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Source(s) GLNGI Staff, Image courtesy of LNGL