GLADSTONE Ports Corporation has granted a three month extension to the site option agreement held by Liquefied Natural Gas Limited (LNG) over the Fisherman’s Landing LNG Project site.

Work on the Fisherman’s Landing LNG project has been on hold since March 2010 as the company has sought gas supply for the plant, which the company ultimately planned would be able to treat and liquefy 3.8 million tonnes of LNG per year.

The lease of the 24 hectare site at the Port of Gladstone will now expire on 30 September, after the Corporation accepted a submission by LNG Ltd on the status of gas supply for the first LNG Train.

LNG said it was still working to secure adequate gas supply for the first LNG Train, which is set to produce 1.5 million tonnes of LNG per year and have a nameplate capacity of 1.9 million tonnes per year.

Company managing director Maurice Brand said he would be able to provide further information on gas supply during the third quarter of 2014.

Gas supplies are meant to be secured either through a letter of intent previously secured through PetroChina Australia or directly under Gas Sale agreements and Tolling agreements with third parties.

Mr Brand said that that while the project has been on hold since March 2010, all approvals are in place to recommence construction once gas has been secured and banking agreements re‐established.

“We are appreciative that the Board of GPC (Gladstone Ports Corporation) has granted a further extension,” he said.

“The company accepts that if we are unable to provide substantial further progress on gas supply during the next quarter, then the Board of GPC will reconsider again in late September 2014 any further extensions based on the progress made.”