The latest company proposing to build another liquified natural gas (LNG) plant in Gladstone says demand in Asia is spurring on the development.

LNG Impel is planning to build a plant that would produce more than five million tonnes a year of LNG.

The company's Justine Davis says there is a lot of interest in the reserves in Queensland.

She says the company is still in discussions with several gas producers in the Surat and the Bowen basins.

"The thing we're still working on is we're still meeting with all the producers and re-meeting with the producers, so hopefully we are working on securing some volumes by the end of the year which will trigger the commencement of the environmental process," she said.

© 2006 Australian Broadcasting Corporation. All rights reserved.

Related Project
Gladstone LNG (GLNG)
Facility Type: LNG Owner: Santos Ltd. (60%; operator); Petronas (40%)
Scope: New Construction Location: Gladstone, Queensland Australia