Coal seam gas producer Arrow Energy Ltd
(ASX:AOE) will now own the liquefied natural gas produced from the first LNG train of the proposed Gladstone LNG Plant at Fisherman’s Landing under after a restructure of the project with Liquefied Natural Gas Ltd
(ASX:LNG).
The company says after discussions with LNG Ltd it became obvious that the most suitable commercial structure for Fisherman’s Landing involved Arrow owning the gas from initial production through to the point of LNG sale to the end user.
Arrow says under the revised proposal the project will be split into an optimized structure of InfraCo and TrainCo.
InfraCo will be established as an unincorporated joint venture between Gladstone LNG, a wholly owned subsidiary of LNG Ltd, and Arrow to design and construct the LNG project infrastructure.
TrainCo will be 100% Arrow owned and will develop the first 1.5 million tonne per annum LNG train on land.
Arrow CEO Nick Davies says the new principles of agreement provide a better commercial structure to deliver the world’s first coal seam gas to LNG export facility.
Arrow Energy earned profit of $366.85 million in financial year 2009.
