Arrow Energy Chief Executive Officer Nick Davies said that “Initial works have already commenced at Fisherman’s Landing and project design and planning is well advanced.
“Arrow is excited to be taking full control of the construction and future operation of the world’s first coal seam gas (CSG) to LNG facility.”?
The company will now focus on full integration of the design and construction plans for the project. This will include an assessment of the previously announced financial investment decision date of 31 March 2010. First LNG production is still expected in late 2012.
The Gladstone “˜Fisherman’s Landing’ LNG Project involves an LNG gas plant which will purify and liquefy CSG sourced from Arrow’s gas fields, located in central Queensland. Once the CSG has been processed at the LNG plant, it will be transported by Golar LNG for export markets.
For full financial details of the agreement, see Arrow’s announcement.
In addition, Arrow has been awarded a pipeline licence for its Surat to Gladstone Pipeline, which will carry coal seam gas from the Surat Basin to the proposed LNG plant at Gladstone.