GTL Resources has blamed WA Government departments for delaying its planned Burrup methanol plant, as the National Australia Bank holds back on underwriting a critical debt facility.
GTL Resources has blamed WA Government departments for delaying its planned Burrup methanol plant, as the National Australia Bank holds back on underwriting a critical debt facility.
The company announced five weeks ago that it had secured the necessary project finance, “subject to the finalisation of due diligence and documentation”, and hoped to sign off on the project within two weeks.
However, despite having Federal Government major project facilitation status, the company was still working its way through outstanding due diligence issues, acting Australian office head and GTL Resources interface manager Gordon Weightman said.
Mr Weightman admitted the company was past target deadlines to have bank documents in place, but said it was waiting on DOLA and LandCorp documentation showing delineated routes for pipelines to and from the plant.
DOLA governs the north-south corridor, but LandCorp is responsible for the east-west portion, Mr Weight-man told WA Business News.
This was not the only frustrating hold-up, he said.
GTL Resources was also still working on closing out the land lease, and talking with the Dampier Port Authority on the pipeline route through the port.
“We need to show the documents to the banks, before we can tidy up the loose ends,” Mr Weightman said.
“The longer we take, it takes longer to set up a plant and get revenue into WA.”
The delays could also adversely affect the overall cost of the methanol project, with GTL Resources unable to firm up on construction and equipment prices.
“These remain valid for a certain amount of time only,” Mr Weightman said.
A DOLA spokesman confirmed the department was finalising documentation for easements for three pipelines, catering for the methanol production, wastewater and gas feed.
“DOLA hopes to conclude this by the end of next week,” he said.
LandCorp chief executive Ross Holt said LandCorp was working closely with GTL Resources to finalise its part of the land access tenure arrangements related to the project.
"Once those matters are resolved, LandCorp would expect to sign all required documentation," he said.
The NAB, the Bank of Scotland, and WestLB are proposing to underwrite a $US290 million debt facility for GTL Resources’ Burrup plant.
Mr Weightman is looking after the company’s Australian operations while company Australia manager Michael Kendal is in the UK, receiving treatment for DVT.
