The approval, which has effect until 6 May 2052, paves the way for the development of a 2.5 million tonnes per annum LNG production and export facility and commits Methanol subsidiary Gastech to a program of meeting environmental objectives including environmental monitoring and the management of impacts.
It is proposed that the LNG project would be installed adjacent to the previously environmentally approved $2 billion Tassie Shoal Methanol Project. Tassie Shoal is an area of shallow water located in Australian waters approximately 275 km northwest of Darwin.
“These two projects recognise the potential to commercialise the vast natural gas resources of the Timor Sea by locating close to the gas sources and thereby avoiding the high cost of long subsea gas supply pipelines. Additionally the projects will share infrastructure and logistic support, significantly reducing operating costs for each project,” said managing director Chris Hart.
Melbourne-based Consulting Environment Engineers Pty Ltd conducted the LNG approval process, supported by Worley Limited and Costain Oil & Gas Ltd, the designers of the LNG process module, and Ove Arup, the designers of the LNG tanks.
Construction of the Tassie Shoal LNG Project is expected to begin in 2007, with first production targeted for 2010, and involves two concrete structures each containing conventional nickel steel LNG storage tanks. These structures would also provide the support for the LNG production module.
The company was also previously awarded a petroleum exploration permit over the area NT/P68 (NT03-3), approximately 25 kms immediately west of the Tassie Shoal Project and Timor Sea LNG Project, 275 kms north of Darwin.
The NT/P68 Permit will have an initial life of 6 years, with two further 5-year rights of renewal, and covers an area of 12,070sq kms which contains a number of significant natural gas and liquids prospects. A gas discovery would significantly enhance the supply options for the Tassie Shoal gas conversion projects.
