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Australian LNGL in gas talks with Bow Energy on Fisherman's Landing

https://www.chemnet.com   Aug 03,2010
Australia's Liquefied Natural Gas Limited has been holding talks with
local coal seam gas supplier Bow Energy on a tie-up for its stalled LNG
project at Fisherman's Landing, near Gladstone in the eastern state of
Queensland, LNGL said in a statement Monday.


The company had previously said it was exploring gas supply and strategic
partner options for its Fisherman's Landing project, which has been stalled
since its 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.


In the statement Monday, LNGL said: "The company advises that it has been
holding discussions with Bow to explore potential transaction opportunities.


"Such discussions with Bow are ongoing but nothing definitive has been
concluded with Bow, nor is there any certainty that any binding transaction
will be agreed between the company and Bow."


The Australian Financial Review business daily reported Monday that LNGL
was as little as a month away from securing a deal with Bow, the largest gas
holder in Queensland not already aligned to one of five planned LNG projects
in Gladstone.


The Fisherman's Landing project would initially comprise the first of two
possible 1.5 million mt/year LNG production trains and is expected to cost
around A$720 million to develop. Prior to the loss of partner Arrow, LNGL was
targeting a startup date for the plant in 2012.


In addition to Shell and PetroChina's project, another three larger coal
seam gas-based LNG projects are being planned on Curtis Island. These are
being pursued by UK gas major BG Group, US major ConocoPhillips and its
Australian partner Origin Energy, and local upstream player Santos in a joint
venture with Malaysian state-owned Petronas.
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