TEX reported that an another import step was taken towards realization of coal seam gas to liquefied natural gas project in Australia Fisherman's Landing LNG Project, which has been developed by Australian Liquefied Natural Gas Limited.

Purchase of coal seam gas assets by PetroChina International Investment (Australia) Pty Limited and coal seam gas development by Australian Metagasco Limited have made progress. On September 13th 2012, LNG Limited highly appreciated the progress that could approach to making Final Investment Decision on FL LNG Project.

If gas supplies from PetroChina Australia and Metagasco are available, 1.5 million tonnes per year of feedstock gas will be able to be procured for No 1 train of FL LNG Project. LNG Limited plans to start building No 1 train as soon as FID is made. If everything goes smoothly, the production is expected to begin at the end of 2015 or in early part of 2016.

The Australian Foreign Investment Review Board recently approved PetroChina Australia's plan to purchase Australian Molopo Energy Limited's Queensland gas assets. The transaction also required a permission from China's National Development and Reform Commission, which is expected to be granted by the end of September 2012.

PetroChina Australia has an intention to purchase Molopo Energy's Bowen Basin coal seam gas assets to deliver up to 65 terajoules per day to FL LNG Project. In order for such supply quantity to be taken at the project, PetroChina has negotiated with LNG Ltd to mutually reach a tolling agreement since August 2012.

Meanwhile, renewal of the petroleum explorations licenses 13 and 16 in the Clarence Moreton Basin, New South Wales has been granted by the state of the government to Australian Metagasco Limited, a potential gas supplier to FL LNG Project. These licenses have been renewed in accordance with a new regulation with a view to lessening environmental damage caused by development of coal sea gas fields. As a result, Metagasco is allowed to continue developing these gas fields as well as install Lions Way pipeline, a new gas transmission pipeline leading to transportation hub Ipswich located approximately 40 kilometer south west of Brisbane in Queensland State.

Also LNG Limited plans to construct a feedstock gas supply route from Ipswich through Queensland gas pipeline to Gladstone Port.

Source - TEX Report Limited

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