LNGL to Exit Fisherman’s Landing LNG Project at Gladstone, Australia

Australian Liquefied Natural Gas will exit its Fisherman’s Landing LNG project at the Port of Gladstone in Queensland, Australia, the company said May 31.

The decision to no longer fund the costs associated with maintaining the project was made following a review of the company’s asset portfolio, LNGL said.

“The closure of the Fisherman’s Landing LNG project was not an easy decision by the company. However, after many years without success in securing the long-term economic gas supply that would be needed to proceed with project construction, we made a strategic decision to close the project,” CEO of LNGL Greg Vasey said.

The Port of Gladstone has seen the start-up of three LNG terminals since late 2014, which include Queensland Curtis LNG, Gladstone LNG and Australia Pacific LNG.

The export projects, combined with production issues stemming from a collapse in oil prices and some Australian states implementing bans and moratoria on onshore gas developments have led to concerns of a potential gas shortage in Australia’s east coast, which has put pressure on the Gladstone export projects.

Earlier this year, the Australian government announced it will place export controls on LNG if there isn’t an adequate supply of gas domestically.

LNGL said it is completing efforts to relinquish the Fisherman’s Landing site to the Gladstone Ports Corporation and to notify other relevant regulators.

“These actions are not believed to have a material impact on the Company’s current cash management plan,” it said.

FLLNG was planned to be a two train terminal with a LNG capacity of 3.5mn metric tons/yr, according to LNGL’s website.

Nathan Richardson