Liquefied Natural Gas Limited (LNGL) will no longer fund maintenance for Queensland’s Fisherman’s Landing LNG (FLLNG) project, it has announced.
Following a review of its asset portfolio, the Australian company has relinquished the site to the Gladstone Ports Corporation (GPC), a wholly-owned subsidiary of LNGL.
“The closure of the FLLNG project was not an easy decision by the company,” said Greg Vesey, LNGL’s managing director and CEO.
“However, after many years without success in securing the long-term economic gas supply that would be needed to proceed with project construct, we made a strategic decision to close the project.”
LNGL, which owns gas exploration companies including US-based Magnolia LNG, Canadas Bear Head LNG, and LNG Technology, has notified the relevant regulators of the change.
The move is also not believed to have a material impact on the company’s cash management plan.