Beach Energy eyes LNG ops by '15, seeks plant site in Australia

26 November 2010 09:30  [Source: ICIS news]

SINGAPORE (ICIS)--Beach Energy is hoping to embark on LNG (liquefied natural gas) operations by 2015 and is currently looking for a production facility site in South Australia, a company spokesperson Ian Howarth said on Friday.

“Beach would be hoping to produce LNG by 2015,” Howarth told ICIS.

The Australian firm had partnered with Japan’s Itochu Corp on the proposed 1m tonne/year LNG facility, which would cost about A$1bn ($981m) to build, it said in a filing to the Australian Stock Exchange on Thursday.

Howarth said some possible plant sites were being considered but added it would take “some months before a final location is selected”.

“It’s in early stages, as yet,” he said.

The proposed facility would be supplied from Beach’s extensive gas portfolio that includes both conventional and unconventional gas resources, it said.

“Beach has over 1.4 TCF (trillion cubic feet) of gas resources booked in the Cooper Basin and Victoria and is currently pursuing an aggressive shale gas program in the Cooper Basin to identify further gas reserves,” the company said in the statement.

The LNG output from the planned facility was intended to be exported into far-east markets, including Japan, Beach Energy said.

Once completed, the project could generate long-term contracts that should be a strong revenue stream for Beach Energy, it said.

($1 = A$1.02)

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By: Pearl Bantillo
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