Newcastle FSRU

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Newcastle FSRU, also known as Newcastle GasDock terminal, is a shelved (confirmed) LNG import terminal in Australia.

Location

Table 1: Location details

Name Location Coordinates (WGS 84)
Newcastle FSRU Newcastle, New South Wales, Australia -32.916667, 151.75 (approximate)

The map below shows the approximate location of the terminal:

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Project Details

Table 2: Infrastructure details

mtpa = million tonnes per year
Name Facility type Status Capacity Total terminal capacity Offshore Associated infrastructure
Newcastle FSRU import shelved (confirmed) 1 mtpa 1.0 mtpa True –

Table 3: Cost

Name Facility type Cost Total known terminal costs
Newcastle FSRU import US$427,849,600 (589,000,000 AUD)[1] US$427,849,600

Financing

No financing data available.

Table 4: Project timeline

FID = Final Investment Decision, used by some developers to indicate a project will move forward
Name Facility type Status Proposal year FID year Construction year Operating year Inactive year
Newcastle FSRU import shelved (confirmed) 2010 2020 (Pre-FID) – – 2023 (shelved)

Ownership

Table 5: Ownership

Name Facility type Status Owners Parent companies Operator
Newcastle FSRU import shelved (confirmed) Newcastle GasDock Co [100%] EPIK [100.0%] –

Background

Newcastle FSRU was initially a proposed export LNG terminal in New South Wales, Australia.[2]

In 2010, Eastern Star proposed the LNG facility, but to export coal-seam gas from its Narrabri project.[3] The Narrabri gas project is the last existing coal seam gas project in New South Wales.[4]

The project was cancelled in 2016, but some elected leaders such as Labor's Joel Fitzgibbon continued to push for an import terminal in the Port of Newcastle.[3]

In December 2018, South Korean company EPIK, through its wholly owned subsidiary Newcastle GasDock Company, proposed an A$500 million LNG import facility at Newcastle.[5] In April 2019, EPIK contracted with Australian firm Watpac to build the terminal as an FSRU.[6] The FSRU would cost an estimated A$589 million.[7] EPIK expected to reach final investment decision (FID) on the project in mid-2020.[8]

In May 2021, EPIK signed a Project Development Option Agreement with the Port of Newcastle.[9]

In September 2022, development plans for the project ceased, effectively shelving the proposal.[10]

In February 2023, EPIK declared its proposed terminal as "economically unfeasible" due to the volatility of the international market. As such, the project was considered to be cancelled.[10]

Australia's Coal Seam Environmental Concerns

In December 2014, Queensland Curtis LNG became the world's first project to turn coal seam gas into LNG for export. Curtis Island's two other LNG plants, Queensland Curtis LNG Terminal and Gladstone LNG Terminal also convert coal seam gas into LNG.[11]

Coal seam gas projects in Australia are not without controversy. Coal seam gas (abbreviated "CSG") is formed by the geological process of heating and compressing plant matter to create coal. Over millions of years, methane forms within the coal. The methane is trapped by water in the gaps and cracks between the coal molecules. These gaps are known as cleats. Australia has been found to have many deposits, and is increasingly mining them through hydraulic fracturing, also known as fracking.[12]

CSG is a form of coalbed methane (CBM), or coalbed gas, and is a type of natural gas extracted from coal beds. In recent decades it has become an increasingly used source of energy in Australia, as well as the United States, Canada, and other countries.[12]

Australian green groups and farmers have raised concerns about coal seam gas development. In May 2010 four toxic chemicals - benzene, toluene, ethylbenzene and xylene (BTEX) - were discovered in eight exploration wells owned by the Australia Pacific LNG Terminal in the Surat Basin. But the Queensland Government has ruled out a moratorium on the industry.[13]

Articles and Resources

Additional data

To access additional data, including an interactive map of LNG terminals, a downloadable dataset, and summary data, please visit the Global Gas Infrastructure Tracker on the Global Energy Monitor website.

References

  1. ↑ https://www.petroleum-economist.com/articles/midstream-downstream/lng/2020/australian-emission-plans-will-fuel-expansion-of-gas-to-power. {{cite web}}: Missing or empty |title= (help)
  2. ↑ Newcastle LNG Terminal, A Barrel Full, accessed April 2017
  3. ↑ 3.0 3.1 Ian Kirkwood, "Fitzgibbon calls for Newcastle gas import terminal," Newcastle Herald, March 1, 2017.
  4. ↑ Gabrielle Chan, " The Guardian, May 22, 2017.
  5. ↑ Newcastle port could be home to $500 million gas import terminal, Sydney Morning Herald, Dec. 5, 2018
  6. ↑ EPIK Inks Engineering Deal for Newcastle LNG Terminal, World Maritime News, Apr. 8, 2019
  7. ↑ Craig Guthrie, Australian emission plans will fuel expansion of gas-to-power, Petroleum Economist, Feb. 16, 2020
  8. ↑ John Snyder, With FID in 2020, Australian LNG import project adds financial advisor, Riviera, Nov. 6, 2019
  9. ↑ "EPIK signs agreement with Port of Newcastle to develop "Newcastle LNG" FSRU Import Terminal". gasprocessingnews.com. Retrieved 2022-05-24.
  10. ↑ 10.0 10.1 "EPIK declares LNG import terminal project as 'economically unfeasible'". petroleumaustralia.com.au. Retrieved 2026-05-28.
  11. ↑ Zara Margolis and Cassandra Hough, "Queensland company to be first in the world to export LNG from coal seam gas," ABC, December 23, 2014.
  12. ↑ 12.0 12.1 "Jargon Buster". BG Group. Retrieved 18 July 2010.
  13. ↑ "Federal Government approves coal seam gas projects in central Queensland" news.com.au, Oct. 22, 2010.