Gas and fertiliser group Liberty Resources has brought forward the development of a $1.4 billion LNG processing plant in central Queensland to capitalise on current eastern states gas market conditions.
The plant is part of a $4 billion gas, electricity and fertilizer project proposal, which Liberty seeks to build at the port of Gladstone.
Liberty plans to process coal seam gas from its central Queensland tenements into LNG and urea for fertilizers, as well as produce low cost power at the facility.
Liberty said today that rising domestic gas costs and future anticipated supply shortfalls necessitated earlier development of the gas treatment component for the project.
Managing director Andrew Haythorpe said developing the gas plant first would result in a substantial reduction in initial project costs, making it easier to raise finance and generate a solid return on investment.
“The feedback we are receiving from financiers is that going first with the gas plant will have wider financing appeal as Queensland is looking for new supply because it faces price hikes for gas and some uncertainty in domestic supply capability due to the local gas volumes now dedicated to long-term LNG contracts for processing facilities being developed at Gladstone,” Mr Haythorpe said.
“The market pressure favours a higher priority focus on getting our own gas plant established but in a manner which continues to allow Liberty to back-end the gas plant into our long-term objective of a combined and world-first integrated low cost gas, electricity and urea production operation.”
At 11:00AM, Liberty shares were steady at 5.8 cents, having been lightly traded.