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

The Fisherman’s Landing project is a proposed mid-size 3.8 million tonnes per annum (mtpa) LNG liquefaction plant on a 24 hectare mainland site in the Port of Gladstone.

Work on the 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.

In an announcement to the Australian Securities Exchange, LNG said it had secured an extension to the Fisherman’s Landing LNG project (FLLNG) Site Agreement for Lease to 31 March 2016 for $1 million.

The Queensland Government had also extended the dates for completion of the FLLNG Project construction under Petroleum Facility Licence 18 (PFL 18) and the Petroleum Pipeline Licence 161 (PPL 161) to 31 December 2017, the group said.

LNG managing director Maurice Brand said this was a step towards recommencing the development of the FLLNG Project.

“Precedent steps need to be finalised before material FLLNG activity recommences including execution of legally binding contracts for: (i) gas sales agreement; (ii) offtake agreement; (iii) engineering, procurement, construction and commissioning services; and (iv) procuring project financing (both equity and debt),” he said.

LNGL would not make a “significant capital commitment,” to the project until binding agreements for gas supply and offtake were advanced.

“LNGL continues to investigate opportunities for gas feed stock to FLLNG and discussions with potential LNG buyers supplying the Asian market are ongoing.”

“LNGL will consider all project financing options and strategic partnerships including the possible sale of a minority interest in FLLNG.”

The company has focused on the development of its 8 mtpa Magnolia LNG project in Louisiana, in the United States.

Mr Brand, who will be relocating to Houston at the end of April 2015 to devote his efforts more fully to the project, said initial LNG production from Train 1 of the Magnolia LNG project was forecasted for late 2018.