GOLAR LNG has signed a heads of agreement with Liquefied Natural Gas Limited (LNG Limited) to purchase all LNG produced from coal seam gas (CSG) in Gladstone, Australia.
In return, Golar will take a 40% stake in LNG Limited's $790m Gladstone plant which will be capable of producing 1.5 million tonnes of LNG per annum. LNG Limited has also taken a 40% stake and given the option of the remaining 20% stake to Arrow Energy.
The plant will purify and liquefy CSG sourced from Arrow Energy’s drilling operations at gas fields in central Queensland.
LNG Limited's managing director Maurice Brand says the benefits of the Golar LNG proposal would deliver the best outcome for the company in these challenging financial times while also and materially assist with the first LNG delivery in late 2012.
Industry officials say the deal has been seen as a giant step forward for the LNG industry.
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