The proposed 500,000 t/a plant will be supplied from Sunshine’s Lacerta Coal Seam Gas (CSG) Project, which currently has 44 petajoules (PJ) of 1P reserves, 469 PJ of 2P and 1,097 PJ of 3P reserves. Lacerta’s 2P reserve volumes are expected to significantly increase over time as a result of further production programs to be undertaken by Sunshine.

Sunshine and Sojitz are also discussing the possibility of using gas from other CSG fields owned by Sunshine to supply additional feed stock to the project.

Under the HoA, Sojitz will have a 70 per cent operating stake in the LNG plant, with Sunshine holding the balance.

Sunshine Gas managing director Tony Gilby said front end engineering and design was being scheduled to begin during the first quarter of 2008. Mr Gilby said the parties aimed to have the project’s bankable feasibility study completed by the end of 2008 and production underway during the first quarter of 2012.

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Mr Gilby said the parties were in the advanced stage of negotiations with the Queensland Government to secure an appropriate site in Gladstone for the LNG plant.