Creamer Media Login

Plug pulled on LNG import terminal in NSW

3rd February 2023

Creamer Media Senior Deputy Editor: Australasia

Font size: - +

PERTH (miningweekly.com) – Reports emerged on Friday that Energy Projects and Infrastructure Korea (EPIK) had shelved plans for its $589-million Newcastle GasDock liquefied natural gas (LNG) import terminal in New South Wales.

In its gas inquiry report released late in January this year, the Australian Competition and Consumer Commission (ACCC) said that EPIK had declared the project as "economically unfeasible" and had ceased development activities in September last year.

EPIK told the ACCC that the “volatility in the international LNG market and high LNG benchmark pricing” had “placed downward pressure on the economics of the project”.

In its report, the ACCC stated that the risk posed by conditions in the international LNG market were not unique to EPIK, but that all proposed import terminals were exposed to the same risks, and that it was possible that other proposals for LNG import terminals could be abandoned or delayed until conditions improved.

EPIK’s proposed import terminal was in 2019 declared a Critical State Significant Infrastructure by the New South Wales government, with the project earmarked to potentially supply up to 80% of New South Wales’ gas needs.

Newcastle GasDock was expected to incorporate a 170 000 m³ class floating storage regasification unit (FSRU), a dockside jetty, and a pipeline lateral connecting the FSRU terminal to an interconnection point on Jemena’s Sydney to Newcastle pipeline, providing direct access into the Sydney Short Term Trading Market.

Operations were expected to start in 2023.

EPIK was unavailable for comment on Friday when approached by Mining Weekly Online.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

Click Here

MAGAZINE & ONLINE

➕

RESEARCH CHANNEL AFRICA

➕

CORPORATE PACKAGES

CLICK FOR A QUOTATION

➕