Regional LNG: Green light for Tassie Shoal venture

Methanol Australia Ltd has received federal government approval to construct and operate a liquefied natural gas (LNG) plant on Tassie Shoal in the Timor Sea, Australian media reported Monday.

The environmental approval will remain in effect until 6 May 2052, paving the way for the development of a 2.5 million tonnes per annum LNG production and export facility.

Methanol Australia's wholly owned subsidiary, Gastech Systems Pty Ltd, plans to install the LNG project adjacent to the previously environmentally approved A$2 billion Tassie Shoal methanol project.

The $900 million first stage of the Tassie Shoal methanol project in the Timor Sea is expected to get the go-ahead by October.

Tassie Shoal, 275km north of Darwin, is estimated to contain 2 trillion cubic metres of gas and construction of the Tassie Shoal LNG project is scheduled to commence in 2007, with first production targeted for 2010.

The project involves construction of two concrete structures each containing conventional nickel steel LNG storage tanks.

The facility will be serviced and provisioned out of Darwin.

Methanol Australia, which aims to be Australia's major gas-to-liquid production company, has been developing the Tassie Shoal projects over the past seven years, gaining the necessary environmental approvals to construct and operate each of the facilities for the next 50 years.

Methanol Australia is 24 per cent owned by Australia's third largest oil and gas producer, Santos Ltd.(*)