Gladstone LNG Pty Ltd (Gladstone LNG) - is developing a mid-scale (3.0 million tonne per annum) liquefied natural gas plant at Fisherman's Landing in the Port of Gladstone. The Project's estimated development cost for the Phase 1 LNG Facility is US$500 million.

The plant at Fisherman's Landing will purify and liquefy coal seam gas (CSG) into liquefied natural gas (LNG). The CSG will be sourced from the Arrow Energy Ltd gas fields, located in Queensland.

The CSG will be transported to Gladstone via a proposed 450km Gas Pipeline. Once the CSG has been processed at the Gladstone LNG plant, it will then be loaded onto LNG carriers for export secured against long term LNG Sales Agreements.

Staged Development of Project

Gladstone LNG has planned the Project in two stages, with the first stage consisting of operating a single processing train (Train 1), which will provide an initial maximum operational capacity of 1.5 million tonnes of LNG per year. A second train (Train 2), will follow, which will double the operational capacity of the plant to 3.0 million tonnes of LNG per year. The expected life of the Project is 25 years.

LNG Carrier Movements

Due to the mid-scale production rate of the plant, LNG carriers will enter the port once every three weeks with the operation of Train 1. This frequency will double when Train 2 is installed. During the LNG loading process, the LNG carrier will be berthed for approximately 24 hours.

Who is Responsible for the Project

Gladstone LNG is a subsidiary of the publicly listed Australian company Liquefied Natural Gas Ltd (LNG Ltd). Gladstone LNG is responsible for the proposed planning, construction and operation of the LNG plant at Fisherman's Landing, including treatment and liquefaction facilities, storage tanks and jetty / ship loading facilities.The Project will be dependent upon the following activities to be provided by others:

Gladstone Ports Corporation- (GPC) undertaking structural modifications and extensions to the existing Fisherman's Landing Wharf and dredging of the berth pocket and nearby channel.

Benefits of the Project to Australia

LNG has become a major export product for Australia, worth about AU$3.2 billion in export income in the years 2004 - 2005. World demand for LNG is expected to double by the year 2020.

The international market is increasingly seeking Australian LNG as it is a secure energy supply that is produced in a stable economic and political environment.

Demand is growing because LNG is safe, flexible, reliable, economic and environmentally acceptable (please refer to LNG FAQ's). The world demand for LNG is also increasing due to the declining availability of alternative sources of energy.

The Project will generate significant economic benefits on a regional, state and national scale, including:

	The employment of up to 150 people during construction, and approximately 36 permanent employees for the operation of the plant;
	Expenditure in the local economy through the purchase and use of local resources;
	Government revenue collected through taxes and royalties;
	The generation of export income;
	The local expenditure of worker disposable incomes
	Raising the profile of CSG production in Queensland; and
	Supporting the development of new gas pipeline infrastructure (Bowen Basin and Surat Basin to Gladstone) in Central Queensland.

LNG Plant Layout

For further information please see the Company's updated presentations.