company announcement

Was'nt sure how to post it properly but.......

1 JULY 2009
STAGE 1 DREDGING AND DISPOSAL PLANS AGREED FOR
FISHERMAN’S LANDING LNG PROJECT, GLADSTONE PORT
Gladstone LNG Pty Ltd continues to make significant progress towards its Final Investment
Decision (FID) in December 2009. Agreement has been reached with the Gladstone Ports
Corporation (GPC) and other Government agencies in relation to the dredging approvals
strategy for the Projects shipping access channel and ship turning basin and the associated
dredged material relocation sites.
The Company has been developing the port infrastructure component of its 2 stage, 3 million
tonnes per annum (mtpa), LNG project largely within previously obtained approvals. The
agreed strategy facilitates a simple approvals pathway for the Projects 1st stage capacity
representing approximately 1.5mtpa of export LNG.
The proposed LNG Project will utilise the approvals obtained by GPC over a decade ago for
widening and deepening the Targinie Channel, Berth 5 vessel turning basin and onshore
dredge material relocation sites.
Over the next 4 to 6 months a development approvals program will modernise the existing
approvals to expand the shipping channel infrastructure in line with current legislation.
Approval for a minor extension to the vessel turning area will also be sought as part of this
process.
The outcomes of a series of LNG ship simulations held in Tasmania, USA and UK have
concluded that for the 1st stage of the LNG Project, approximately 1.5 million cubic metres
needs to be dredged, and this material can be relocated to onshore sites.
GPC are progressing environmental impact studies that incorporate the ability for expansion
of the LNG Project’s shipping channel infrastructure if needed for the 2nd stage LNG Train.
The cost estimate for dredging and the dredge material relocation site is not expected to
exceed US$50 million should the Company be required to solely fund this cost. The cost
could be reduced by contribution from future Port users utilising the expanded shipping
channel.
2
In commenting on the approvals plan, the Company’s Managing Director, Maurice Brand
said:
“This is a wonderful outcome for the project in terms of capital costs and project schedule that
allows for first LNG shipments in late 2012 and is one of the reasons that the project can be
delivered at a much lower capital cost than most other LNG projects”.
As advised, on the 5 May 2009, dredge material from a current dredging program at the new
Berth 1 at Fisherman’s Landing is being placed on the location of the 1st stage (1st LNG train)
of the LNG Project. The mounding of this dredge material represents the initial phase of the
foundation preparation for the Project and will significantly assist to reduce future costs and
facilitate further early site works later this year to shorten the overall construction schedule.


Sorry about the poor format as i had to copy and paste.