Australia’s AIE gets green light for Port Kembla LNG import plan, expects first gas late 2020

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Australia’s AIE gets green light for Port Kembla LNG import plan, expects first gas late 2020

Australia Industrial Energy (AIE) has been given development consent from the New South Wales state government for its Port Kembla LNG import plan and expects to start delivering gas to the country’s east coast by late 2020, it said Monday.

The timeframe of the project – which is one of five, vying to bring LNG into Australia amidst rising gas prices and supply issues – is planned to coincide with open positions for gas supply agreements, Squadron Energy CEO Stuart Johnston said in a phone interview with S&P Global Platts.

“There’s always been a bit of flexibility in the timing [for the project],” he said. In earlier announcements, an “early 2020” timeframe was indicated.

“With development consent, now we can finalize GSAs,” he added.

The build is expected to take 12 to 14 months from the final investment decision – which is expected around the middle of this year.

Earlier in the year, AIE said discussions for gas supply agreements are taking place with 22 potential customers.

The AIE plan is for an LNG import terminal which could bring new supply of up to 100 PJ of gas/year, which equates to roughly 2 million mt/year of LNG. It is estimated an LNG shipment would be required every two to three weeks for the 100 PJ/year supply, AIE says.

“Supply could be increased to around 140 PJ/year-15 PJ/year through a slight increase in LNG delivery schedules and pipeline upgrades,” the company says.

It could supply more than 70% of New South Wales’ natural gas needs, it said Monday.

The development consent announcement makes Port Kembla LNG the first of the five projects to receive a green light from the government.

The other plans include AGL’s Crib Point and one by ExxonMobil – both in Victoria; EPIK’s NSW Newcastle LNG and Venice Energy’s plan for Port Adelaide in South Australia.

The AIE consortium includes Australian mining magnate Andrew Forrest’s Squadron Energy as well as Japan’s JERA and Marubeni.

https://www.hellenicshippingnews.com/australias-aie-gets-green-light-for-port-kembla-lng-import-plan-expects-first-gas-late-2020/

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