The company has said that it will now focus on full integration of the design and construction plans for the project.

The Gladstone ‘Fisherman’s Landing’ LNG Project involves the construction of a 1.5 MMt/a LNG plant, along with associated infrastructure, at Fisherman’s Landing in Gladstone, Queensland. The plant will purify and liquefy CSG sourced from Arrow’s gas fields, located in central Queensland. The gas from the project comes from Arrow’s Surat Basin tenements and will be delivered by the proposed 467 km Surat to Gladstone Pipeline.

Once the CSG has been processed at the LNG plant, it will be transported by Golar LNG for export markets.

The LNG train will be developed using LNG Ltd’s OSMR liquefaction technology under a technology licence and fee agreement. The train site and design will provide for an additional LNG train of 1.5MMt/a, subject to the availability of further gas. SK Engineering Company is progressing front end engineering and design for the second train.

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Arrow will assess the previously announced financial investment decision date of 31 March 2010. First LNG production is still expected in late 2012.

Arrow Chief Executive Officer Nick Davies said that “Initial works have already commenced at Fisherman’s Landing and project design and planning is well advanced. Arrow is excited to be taking full control of the construction and future operation of the world’s first CSG to LNG facility.”

For full financial details of the agreement, see Arrow’s announcement.