Chief executive Dr Jack Hamilton told PetroleumNews.net's sister publication PNGIndustryNews.net Liquid Niugini would consider third-party gas suppliers once discussions with the PNG Government over a gas agreement and front-end engineering and design for its proposed LNG plant were completed.

"We will pick up the preliminary discussions we have already had with third parties to progress interest," he said.

The venture, which is one-third owned by InterOil, Merrill Lynch and Clarion Finanz AG, aims to deliver a two-train LNG plant capable of producing up to 9 million tonnes of LNG per annum from 2012, with gas sourced from InterOil's Elk and Antelope fields.

Further drill stem testing at Elk-4 in PNG's Gulf Province will determine whether the Elk and Antelope finds consist of a continuous gas field, and good results should help land Liquid Niugini a gas agreement with the PNG Government.

So far the gas flow rate from Elk-4 has exceeded 14 million cubic feet of gas per day.

The Elk and Antelope structures have contingent reserves of between 3.5-18.9 trillion cubic feet of gas.