Port Kembla FSRU
|This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.|
Port Kembla FSRU is a proposed FSRU terminal in Port Kembla, New South Wales, Australia.
The terminal is planned for Port Kembla, a suburb of Wollongong in New South Wales.
- Parent: Australian Industrial Energy (AIE-contractor), Höegh LNG (owner)
- Location: Port Kembla, New South Wales, Australia
- Coordinates: -34.4814133, 150.8893602 (approximate)
- Capacity: 1.9 million tonnes per year
- Cost: A$250 million (US$159 million)
- Financing: JERA, Marubeni Corp. and Squadron Energy
- Status: Proposed, pre-FID
- Type: Import
- Start Year: 2022
Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day
In June 2018 the project was proposed as a 100 petajoules/yr terminal for importing natural gas from southeast Asia. The project would cost an estimated A$300 million and is backed by Australian billionaire Andrew Forrest and Japanese energy company JERA. The Port Kembla terminal would connect to the existing Eastern Gas Pipeline via the 12 kilometre Port Kembla to EGP Gas Pipeline.
In March 2019 AIE announced that an Environmental Impact Statement (EIS) had been submitted and reviewed and that front-end engineering and design (FEED) had been completed. In April 2019 the project was approved by the New South Wales government. In May 2019 EnergyAustralia agreed to buy 15 petajoules of gas a year from the facility over 5 years starting from January 2021.
In November 2019 the project was reported to be significantly delayed and unlikely to reach its projected in-service date of late 2020.
In March 2020 Victoria lifted its ban on onshore gas production but a spokesman for AIE said this would not impact plans to build the FSRU for importing gas. In April 2020 Victoria approved an application from AIE to modify the terminal's development consent which will allow for increased output and number of shipments of up to 46 variable-sized vessels per year, representing an increase in the number of shipments by 20 per year. AIE has yet to reach a final investment decision (FID) but has stated that it is aiming to achieve this by the third quarter of 2020. In October 2020, Marubeni and Jera sold their interests in the Port Kembla LNG import terminal to Australian energy firm Squadron Energy.
The Sydney Morning Herald reported in January 2021 that the project developers were aiming for gas imports to start flowing at the facility by 2022, with FID potentially to be reached in the first quarter of 2021. In March 2021, it was announced that Australian energy infrastructure company Jemena had signed a deal with Australian Industrial Energy (AIE) to connect the LNG import terminal to the Eastern Gas Pipeline via the 12 kilometre Port Kembla to EGP Gas Pipeline which Jemena will build and operate.
Articles and resources
- Hoegh LNG to Provide FSRU for Port Kembla Gas Terminal, Offshore Energy, August 21, 2018
- Nick McLaren, Port Kembla Gas Terminal raises ocean water cooling concerns, LNG Industry, Nov. 4, 2019
- Will Owens, Port Kembla LNG import project faces delay, ABC, Oct. 4, 2020
- Nick O'Malley and Nick Toscano, What is the role of gas in a green economy?, The Sydney Morning Herald, Jan. 17, 2021
- NSW's first LNG import terminal planned for Port Kembla, expected to drive down gas prices, ABC, Jun. 5, 2018
- Port Kembla FSRU project nearing FID, LNG World News, Mar. 6, 2019
- UPDATE 2-Australia's NSW state approves Port Kembla LNG import terminal, Reuters, Apr. 28, 2019
- EnergyAustralia agrees to buy gas from Port Kembla LNG facility, Oil & Gas Journal, May 23, 2019
- Australia's LNG import plans unchanged despite Victoria lifting onshore gas ban, S&P Platts Global, Mar. 26, 2020
- Port Kembla plans ammended for more gas, Mining Weekly, Apr. 21, 2020
- NSW approves Port Kembla LNG modification, IJGlobal, Apr. 20, 2020
- Kevin Morrison, Japan's Jera, Marubeni exit Port Kembla LNG project, Argus Media, Oct. 20, 2020
- Adnan Bajic, Jemena, AIE firm up Port Kembla LNG pipeline connection, Offshore Energy, Mar. 18, 2021