Liquefied Natural Gas Ltd
(ASX:LNG) has stopped work at the Fisherman’s Landing LNG project it shares with Arrow Energy Ltd.
The company says it has placed ongoing early site works on hold pending Arrow’s decision on whether to accept a joint takeover bid from Royal Dutch Shell and PetroChina.
Twenty workers were stood down and equipment demobilised at the site in Gladstone, Queensland, late last Friday.
On February 11, Arrow agreed to buy out LNG Ltd’s interest in the Fisherman’s Landing project, but the transaction was put on hold when it received the takeover offer from Shell.
LNG Ltd says it still considers the sale to Arrow to have the potential to benefit shareholders, but it is now assessing these benefits against other gas supply and project structuring opportunities.
The company says work will resume at the project if the proposed sale to Arrow is finalised or if the company enters into alternative gas supply agreements with other parties.
Liquefied Natural Gas Ltd reported a loss of $19.54 million for the 2009 financial year.
