Ann: Bow boosts 2010 gas reserves target by 50% , page-8

re: Ann: Bow boosts 2010 gas reserves target ... And why is Fisherman's Landing important to Bow - here's a related article from yesterdays The Australian. Note the last line reference to Bow which has now declared it could deliver 4m tonnes of LNG per annum, more than what LIQUEFIED Natural Gas is seeking as a minimum.

LNG project may still go ahead
From: The Australian
May 11, 2010 12:00AM

LIQUEFIED Natural Gas has given disappointed investors a ray of hope that it may still build a gas export project in Queensland, even though it has lost Arrow Energy's gas supply and financial support.

LNG shares were sold off dramatically in March, when Arrow accepted a $3.44 billion takeover bid from Royal Dutch Shell and PetroChina, leaving the proposed Fisherman's Landing LNG project at Gladstone with no gas, no customers and not enough development funding.

Arrow was Queensland's last big coal-seam gas company that had not been swallowed by a bigger fish, so there are doubts LNG will find the gas it needs.

The company has suggested it could source coal-seam gas from some of the state's smaller companies.

LNG yesterday said it was "close to finalising" a gas supply deal. The announcement sent LNG's shares soaring. They closed at 43c, up 9c.

Discussions are also progressing with potential strategic partners, which could pour funds into building a plant that would process 3 million tonnes of LNG each year.

"To date, a number of suitable parties have expressed a willingness to participate, including fulfilling the role of LNG buyer and participation in the company's proposed gas supply plans," it said.

Before the Arrow deal fell through, Japan's Toyota Tsusho had agreed to buy gas from the plant, which Arrow had signed a preliminary agreement to buy and build for an estimated cost of $2.2 billion, with upfront cash and royalty payments to go to LNG Ltd.

In a complex arrangement, project equity-holder and shipping company Golar LNG had agreed to buy LNG from the project, and then sell it on to Toyota Tsusho. While that deal has been terminated, Golar said in March it would continue to work closely with LNG Ltd on development options through a "collaboration agreement".

In another development, LNG Ltd said it had been able to strike a lease agreement with Gladstone Ports in relation to an LNG site, conditional on it finding a gas supplier by July 1 next year, and other conditions such as winning environmental approval.

Smaller companies in Queensland proving up coal-seam gas reserves include Bow Energy and Westside.