LNGL, which has pivoted to North America in recent years, was an early entrant to the east coast LNG export market, being so confident of development that is started earthworks, only to be derailed by the flood of global oil and gas companies swooping on Australian start-ups such as Arrow Energy and Queensland Gas Company, which had played a key role in defining the vast CSG reserves in the Bowen and Surat basins.
The rapid-fire purchased of most of the uncontracted gas potential in Queensland, vacuuming up companies such as Arrow, QGC, Pure Energy Resources, Bow Energy and Sunshine Gas in 2010 had left LNGL all dressed up but with no gas to get anywhere.
It had a deal in the wings with Arrow, but after a takeover by Shell and PetroChina, five months after siteworks started, gas from Arrow's fields was no longer available.
For a time it looked like Petrochina, which had purchased Molopo Energy's Queensland CSG assets, or WestSide Energy could step in and fill the gap of what had been planned as a smaller-scale LNG export facility, but LNGL could never get enough gas over the line.
The project was estimated as requiring a further 2.5 years to be completed, and while LNGL and the Port of Gladstone have kept the dream on life support, LNGL was unable to secure the 130 terajoules per day needed to justify re-commencement of work on the first 1.5 million tonne per annum train, which would require 260TJpd to run at full capacity.
With the changing political landscape turning against gas exports in the face of domestic gas shortages, and shortfalls in meeting the newly established LNG plants owned by the likes of Santos, Origin Energy and Shell, pulling the curtain down on Fisherman's Landing was a case of when, and not if.
It joins Sunshine LNG, Newcastle LNG and Abbot's Point LNG on the scrapheap of ideas.
LNGL said this morning a review of the project had found there was no point in funding Fisherman's Landing further.
It has told the Gladstone Ports Corporation it will relinquish the site and exit the project.
Managing director Greg Vesey said the decision would not have a material impact on the company.
"The closure of the Fisherman's Landing LNG Project was not an easy decision by the company," he said.
"However, after many years without success in securing the long-term economic gas supply that would be needed to proceed with project construction, we made a strategic decision to close the project."
LNGL is now battling to develop its Magnolia LNG project in Louisiana, USA, and Bear Head LNG in Canada.
