aoe supply deal

Gas company close to supply deal

MATHEW MURPHY
September 16, 2009
LNG, the company set to produce the first liquefied natural gas out of Gladstone, is on the verge of signing a deal to supply gas from 2012.

LNG announced in February it had signed a heads of agreement with its biggest shareholder, Norwegian company Golar LNG, to supply all of its first production train, which has a capacity of 1.5 million tonnes a year. BusinessDay believes that talks between Golar LNG and the end buyer are ending and a deal could be announced this week.

LNG's Fisherman's Landing project will be the first of five proposals to export LNG from Gladstone. LNG plans to build a 1.3 million tonnes-a-year LNG plant for export in 2012, with early work starting next month.

Arrow Energy will supply the project's coal-seam methane from its reserves and has an option for a second LNG train.

Meanwhile, LNG has announced it has made a start to front-end engineering design for the second 1.5 million tonnes-a-year LNG train.

LNG managing director Maurice Brand said the second train would be based on the design of the first but would be completed in ''a much shorter time and at minimal cost''.

Source: The Age