LNG Ltd, which is a partner in the project with coal seam methane producer Arrow Energy, said today it had contracted WorleyParsons and Arup to help with the front end engineering design phase of the project.

The company also said it would start preparing an environmental impact statement for the Central Queensland Port Authority next Monday, January 21.

This will be followed by ground improvement work to prepare the LNG tank and plant foundations.

“The Gladstone LNG Project-Fisherman’s Landing remains on budget and on schedule, with financial close still targeted for late 2008 and the first LNG shipment scheduled for January 2011,” LNG Ltd managing director Maurice Brand said.

Based on a facility with a capacity of 1.3 million tonnes of LNG per annum, the company estimated the project will cost $US400 million to complete.

LNG Ltd added that it was in advanced discussions with shortlisted LNG buyers for 20 cargoes per year from January 2011 onwards.

In addition, the company and Arrow Energy have started negotiating the terms of a gas sales agreement, which is expected to be finalised in the current quarter.