Gas explorers stocks on rise
DMETGASCO, which operates the Kingfisher gas site near Casino, will study the feasibility of converting the gas to liquefied natural gas (LNG) at Gladstone in Queensland.
The joint project, with LPG Ltd, will also examine the possibility of a new LNG facility in Brisbane, while Metgasco will also look at a separate LNG project, perhaps a floating project located offshore.
Both projects would use gas from Metgasco’s Clarence Moreton Basin reserves in Northern NSW.
“Metgasco intends to evaluate the commercial, environmental and technical feasibility of a number of export LNG options,” the company said in a statement to the stock exchange yesterday.
It said if the review determined it was feasible the company expected to select a preferred option next year.
Metgasco’s shares rose more than 12 per cent on the news. LNG Ltd, which recently bought 5pc of Metgasco shares, rose 1.12pc.
Metgasco managing director David Johnson said yesterday the company was ‘well advanced’ in its plans to develop the Lions Way pipeline that would deliver gas from its fields in Northern NSW and Queensland.
“We believe the development of export market opportunities for gas from the Clarence Moreton Basin will bring significant economic and employment benefits to NSW,” he said.
The company has recently concluded a review of its coal seam and conventional gas supply capabilities, which indicated there was enough to supply an LPG plant with up to three million tonnes annually for more than 20 years.
Mr Johnson said the signing of the memorandum of understanding with Norway-based FLEX LNG would examine the possibility of an export LNG project located offshore.
“Over the next few months, Metgasco and FLEX will assess whether a floating LNG project is a viable proposition to monetise gas from Metgasco’s onshore acreage in the Clarence Moreton Basin,” he said.
“Unlike other Australian coal seam gas projects, Metgasco’s resources were located near the coast, making floating LNG a commercial possibility.”