Extends Lease at Fisherman's Landing Project
Perth, Mar 7, 2016 AEST (ABN Newswire) - Liquefied Natural Gas Limited (
ASX:LNG) (LNGLY:OTCMKTS) (LNGL or the Company) today announced that its 100% owned subsidiary, Gladstone LNG Pty Ltd, owner of the Fisherman's Landing LNG project located in Gladstone, Queensland, (FLLNG or FLLNG Project) has:
- Extended the FLLNG Site Agreement for Lease with the Gladstone Ports Corporation (GPC) to 31 March 2017; and
- An option to further extend on the same terms (with an inflation index) through to 31 March 2018 has been secured, subject to the provision of appropriate evidence demonstrating to GPC that the FLLNG Project remains a positive investment intention.
The extension consideration reflects the existing option provision within the GPC Site Agreement for Lease. There were no other changes to the Site Agreement for Lease originally signed on 4 May 2010. The GPC extension dates are more consistent with the The Queensland Government's Department of Natural Resources and Mines date (31 December 2017) for completion of the FLLNG Project construction under Petroleum Facility Licence No. 18 (PFL 18) and the Petroleum Pipeline Licence No. 161 (PPL 161).
LNGL's Managing Director and CEO Maurice Brand said, "The extension of the Site Agreement for Lease with the Gladstone Ports Corporation helps us progress towards recommencing the development of the FLLNG Project. LNGL continues to investigate opportunities for gas supply to the FLLNG Project and discussions with potential LNG buyers supplying the Asian market are ongoing."
"No significant capital commitment to the FLLNG Project will occur until binding agreements are materially advanced. The costs associated with this extension and support services falls within the Company's existing three year cash management plan," said Mr Brand.
About Liquefied Natural Gas Ltd
Liquefied Natural Gas Limited (
ASX:LNG) (OTCMKTS:LNGLY) (LNGL) is an ASX listed company whose portfolio consists of 100% ownership of the following companies:
- Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an eight mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;
- Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian-based subsidiary, which is developing an 8 – 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
- Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG; and
- LNG Technology Pty Ltd, a subsidiary which owns and develops the Company's OSMR® LNG liquefaction process, a midscale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.
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