Photo by: Bloomberg
PERTH (miningweekly.com) – The Australian Industrial Energy (AIE) consortium has selected Port Kembla, in New South Wales, as the site for the first A$300-million liquefied natural gas (LNG) import terminal.
The proposed terminal will have the ability to supply more than 100 PJ/y of LNG, sufficient to meet over 70% of New South Wales’ gas needs, AIE said in a statement.
The terminal will require a capital investment of between A$200-million and A$300-million, and will generate 150 jobs during construction, as well as between 40 and 50 jobs during operations.
“New South Wales is facing significant challenges in ensuring available and affordable gas supplies and we are working to make this project a reality as quickly as possible,” said AIE CEO James Baulderstone.
“In recent times, wholesale gas prices have doubled and, in many cases, tripled in New South Wales. In addition, many industrial companies are now unable to secure gas for any period longer than 12 months.”
Baulderstone noted that to date, the consortium has entered into 12 memorandums of understanding for offtake agreements, providing AIE with the confidence to move to the detailed engineering phase of the project.
Subject to the required approvals, the proposed Port Kembla gas terminal could underpin the vast majority of the state’s entire natural gas needs by early 2020, AIE said.
The consortium comprises mining magnate Andrew Forrest’s Squadron Energy, infrastructure investor Marubeni Corporation, and the world’s largest LNG buyer JERA Co.
LNG will be sourced from global suppliers and transported by LNG carriers to Port Kembla, where it will be transferred to a floating storage and regasification unit, moored at the inner harbour.