LNG Ltd’s HoA with Arrow falls through
LIQUEFIED Natural Gas Ltd says the expiry of the heads of agreement for the sale of the Fisherman’s Landing LNG project to Arrow Energy removes uncertainty for other potential gas suppliers.
In February, Arrow entered into a HoA to purchase the Fisherman’s Landing LNG plant in Gladstone from LNG Ltd for around $168 million.
Following the HoA, Shell and Petrochina made a joint takeover bid for Arrow Energy casting doubt over the LNG Ltd deal, and in March LNG Ltd and Arrow extended their agreement to June 30. The agreement expired yesterday.
In a statement released today, LNG Ltd said it had decided there was no value to shareholders in pursing an extension to the HoA as there had been no progress under the agreement since the Shell and Petrochina bid was announced.
The company has continued to explore all options and has been actively evaluating gas supply alternatives for the LNG project.
LNG Ltd managing director Maurice Brand said considerable work has been carried out in relation to the gas supply plan and assessing all viable gas supply alternatives for the project.
“In tandem, the company is reviewing strategic partner opportunities with the objective of proceeding to strategic partner selection once the gas supply plan is finalised,” he said.
The company continues to believe the Fisherman’s Landing project is well placed to be successfully developed and commercialised in a much shorter timeframe than the planned larger LNG projects in Gladstone.
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