Gladstone LNG Project.
Arrow has an exclusive agreement with LNG Limited (LNGL) to supply coal seam gas at prices linked to crude oil to a planned liquefied natural gas (LNG) plant at Fisherman’s Landing, Gladstone.
The project is expected to produce up to 1.5 million tonnes per annum (mtpa) and consume between 60 and 75 petajoules of gas for a 12-year period. A second LNG train of similar capacity is planned as and when gas reserves are proven.
The project will be the world’s first LNG plant to use coal seam gas a feedstock when it starts deliveries in 2011.
Once the coal seam gas has been processed at the LNG plant, it will then be loaded onto carriers for export to the target markets of South East Asia and/or North America. LNGL has indicated that numerous buyers have declared interest. Arrow’s alliance with Shell, the world’s largest LNG operator, will bring additional expertise to the project.
Arrow also has a 10 percent stake in LNGL with an option to take a 20 percent interest in the company’s proposed LNG plant in Gladstone.
LNGL’s license agreement with Gladstone Ports Corp has secured a brownfield area at Fisherman’s Landing and provides a framework to negotiate arrangements for the use of the port, dredging, wharf modifications and other services.
Following reserve upgrades announced in July 2008, Arrow now has 2P reserves cover for the first LNG train.
LNGL has signed an engineering and construction service contract with South Korea’s SK Engineering & Construction (SKEC) for the project. The agreement provides all front-end engineering and design, detailed engineering and prerequisite construction services for the LNG plant. In addition, SKEC and Laing O’Rourke Australia Construction have formed a joint venture to enter into a bankable engineering, procurement, and construction contract, with LNGL, to be executed by December 2008.
The global demand for LNG is forecast to more than double from 150 mtpa in 2006 to 400 mtpa by 2015 as developing countries like China and India compete for energy resources with developed states.
The project is expected to produce up to 1.5 million tonnes per annum (mtpa) and consume between 60 and 75 petajoules of gas for a 12-year period. A second LNG train of similar capacity is planned as and when gas reserves are proven.
The project will be the world’s first LNG plant to use coal seam gas a feedstock when it starts deliveries in 2011.
Once the coal seam gas has been processed at the LNG plant, it will then be loaded onto carriers for export to the target markets of South East Asia and/or North America. LNGL has indicated that numerous buyers have declared interest. Arrow’s alliance with Shell, the world’s largest LNG operator, will bring additional expertise to the project.
Arrow also has a 10 percent stake in LNGL with an option to take a 20 percent interest in the company’s proposed LNG plant in Gladstone.
LNGL’s license agreement with Gladstone Ports Corp has secured a brownfield area at Fisherman’s Landing and provides a framework to negotiate arrangements for the use of the port, dredging, wharf modifications and other services.
Following reserve upgrades announced in July 2008, Arrow now has 2P reserves cover for the first LNG train.
LNGL has signed an engineering and construction service contract with South Korea’s SK Engineering & Construction (SKEC) for the project. The agreement provides all front-end engineering and design, detailed engineering and prerequisite construction services for the LNG plant. In addition, SKEC and Laing O’Rourke Australia Construction have formed a joint venture to enter into a bankable engineering, procurement, and construction contract, with LNGL, to be executed by December 2008.
The global demand for LNG is forecast to more than double from 150 mtpa in 2006 to 400 mtpa by 2015 as developing countries like China and India compete for energy resources with developed states.
