In March, LNG Limited signed an agreement with Jemena to investigate the expansion capacity of the pipeline to evaluate the potential for it to transport gas from the Wallumbilla Gas Hub to the Callide Gas Hub in Gladstone.

The completed pre-FEED study confirms the existing pipeline can be expanded to allow for gas supply for the first LNG train, available in 2014.

The gas delivery plan between the companies will also supply gas in 2015 for a second LNG train, and each train will have a guaranteed capacity of 1.5 MMt/a of gas.

The existing QGP, owned and operated by Jemena, currently operates from Wallumbilla to Gladstone with its route running through the Callide Gas Hub.

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LNG Managing Director Maurice Brand said “Whilst the outcome from the pre-FEED study was expected, we are pleased that we have confirmed the company’s schedule for gas supply to Fisherman’s Landing.”

Mr Brand said the companies were proposing to negotiate a gas transportation agreement.

The Callide Gas Hub is the location where four new pipelines from the Surat Basin and two new pipelines from the Bowen Basin are planned to enter Gladstone for gas supply to the proposed Curtis Island LNG projects and Gladstone region.