LIQUEFIED Natural Gas (LNG) Limited has extended its lease over the Fisherman’s Landing LNG (FLLNG) project in Queensland until 31 March 2017, extending a site lease agreement first signed in 2010.

LNG subsidiary Gladstone LNG will now further postpone the development of a mid-scale LNG export terminal at the Fisherman’s Landing site at Gladstone Port until 31 March 2017, under the deal with the Gladstone Ports Corporation (GPC).

It will also have an option to further extend the agreement on the same terms through to 31 March 2018, “ subject to the provision of appropriate evidence demonstrating to GPC that the FLLNG Project remains a positive investment intention.”

In an announcement, LNG said the GPC extension dates were more consistent with the Queensland Government’s Department of Natural Resources and Mines’ preferred date (31 December 2017) for completion of the FLLNG Project construction.

LNGL’s managing director Maurice Brand said the extension of the site agreement would help it move towards recommencing the development of the FLLNG project.

“LNGL continues to investigate opportunities for gas supply to the FLLNG Project and discussions with potential LNG buyers supplying the Asian market are ongoing,” he said.

Mr Brand added that there would be no significant commitment of capital to the project until binding agreements were materially advanced.

“The costs associated with this extension and support services falls within the Company’s existing three year cash management plan,” he said.