Liquefied Natural Gas Limited announced that Jemena has completed the Pre-Front End Engineering Design (Pre-FEED) study. The Pre-FEED study report confirms that the existing Jemena Queensland Gas Pipeline (QGP) from Wallumbilla to Gladstone can be expanded to allow for gas supply for the first LNG train to be available in 2014 for the company’s LNG Project at Fisherman’s Landing, Port of Gladstone, Queensland, Australia.
The Gas delivery plan with Jemena also provides for gas supply in 2015 for a second LNG train, each LNG train having a guaranteed capacity of 1.5 mtpa. As advised in February and March this year, the Company’s Gas Delivery Plan provides for two main gas delivery locations, being the Wallumbilla Gas Hub and Callide Gas Hub (see location plan below), for gas supply to the Fisherman’s Landing LNG Project. The existing QGP, owned and operated by Jemena Queensland Gas Pipeline (1) Pty Ltd and Jemena Queensland Gas Pipeline (2) Pty Ltd (Jemena), currently operates from Wallumbilla to Gladstone with its route running through the Callide Gas Hub.
Importantly, the Callide Gas Hub is the location where four new pipelines from the Surat Basin and two new pipelines from the Bowen Basin are planned to enter Gladstone, for gas supply to the proposed Curtis Island LNG projects and Gladstone region.
Furthermore, in addition to potential gas supply at the Wallumbilla and Callide Gas Hubs, Jemena’s QGP pipeline route runs past, or close to, several gas permit areas thus opening up the potential for several additional gas supply delivery points.
LNG Managing Director Maurice Brand said “ whilst the outcome from the Pre – FEED study was expected, we are pleased that we have confirmed the Company’s schedule for gas supply to Fisherman’s Landing. It is proposed that LNG and Jemena will proceed to agree acceptable terms for the final FEED study and also negotiate a Gas Transportation Agreement ”.
“ The completion of the Pre-FEED study has been an important step for gas delivery to Fisherman’s Landing. This provides a timeframe for negotiation with gas suppliers who are capable of supplying into the expanded Queensland Gas Pipeline in 2014 for delivery of gas to either the Wallumbilla or Callide Gas Hubs .”
“ Following on from completion of the Share Placement with HQCEC earlier this week and the pending appointment of Madam Wang Xinge as an Executive Director and Co CEO strengthening the management team, the Company is now well placed to secure gas supply ,” said Mr Brand.
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Source: Liquefied Natural Gas Limited, June 17, 2011;