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http://news.smh.com.au/breaking-news-business/metgasco-looks-at-lng-exports-20100927-15suj.html

Metgasco looks at LNG exports
September 27, 2010 - 9:14AM

AAP

Gas companies LNG Ltd and Metgasco have agreed to jointly study the feasibility of project converting gas to liquefied natural gas (LNG) at Gladstone in Queensland.

The project also will look at the possibility of a new LNG facility in Brisbane, while Metgasco also looks at a separate LNG project, perhaps floating offshore.

Both projects would use gas from Metgasco's Clance Moreton Basin in Northern NSW.

The joint study with LNG Ltd would look at feeding the gas to LNG's plant at Gladstone on the Central Queensland coast, with an option also of supplying the feed to "a potential LNG project to be sited within the Port of Brisbane".

In its own statement, Sydney-based Metgasco said it had begun feasibility studies into getting its gas to export markets.

"Metgasco intends to evaluate the commercial, environmental and technical feasibility of a number of export LNG options and form a view on whether an LNG export project is commercially feasible...", the company said on Monday.

"If this review determines that this commercialisation option has merit and is feasible, Metgasco expects to be able to select a preferred LNG project option in 2011."

As well as the Gladstone option with its largest shareholder, LNG Ltd, Metgasco said it also had entered a memorandum of understanding with Norwegian-listed FLEX LNG Ltd to look at the feasibility of an LNG project floating offshore.

"Unlike other Australian coal seam gas projects, Metgasco's resources are located close to the coast, making floating LNG a commercial possibility," Metgasco said in its statement.

Metgasco managing director David Johnson said the believe that the development of export market opportunities for gas from the Clarence Moreton basin "will bring significant economic and employment benefits to NSW".

? 2010 AAP