(MENAFN- ProactiveInvestors)
( OTC ADR:LNGLY)(LNGL) has outlined that wholly-owned subsidiary Gladstone LNG Pty Ltd owner of the Fisherman’s Landing LNG project located in Gladstone (FLLNG) has extended the site agreement lease.
The lease is with the Gladstone Ports Corporation (GPC) to 31 March 2017.
The company has also entered an option to further extend on the same terms (with an inflation index) through to 31 March 2018.
This is subject to the provision of appropriate evidence demonstrating to GPC that the FLLNG Project remains a positive investment intention.
The extension consideration reflects the existing option provision within the GPC Site Agreement for Lease.
The company said that there were no other changes to the agreement originally signed in 2010.
The GPC extension dates are more consistent with the The Queensland Government’s Department of Natural Resources and Mines date (31 December 2017) for completion of the FLLNG Project construction under Petroleum Facility Licence No. 18 (PFL 18) and the Petroleum Pipeline Licence No. 161 (PPL 161).
Maurice Brand managing director and CEO for LNGL commented:
“The extension of the Site Agreement for Lease with the Gladstone Ports Corporation helps us progress towards recommencing the development of the FLLNG Project.
"LNGL continues to investigate opportunities for gas supply to the FLLNG Project and discussions with potential LNG buyers supplying the Asian market are ongoing.
“No significant capital commitment to the FLLNG Project will occur until binding agreements are materially advanced.
"The costs associated with this extension and support services falls within the company’s existing three year cash management plan."
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