Crib Point LNG Terminal

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Crib Point LNG Terminal was a proposed LNG import terminal off the coast of Victoria, Australia. It was cancelled by AGL Energy in May 2021.[1]

Location

The terminal is planned for Crib Point at Western Port in southern Victoria, 80km south of Melbourne.

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Project Details

  • Parent Company: AGL (contractor), Höegh LNG (owner)[2]
  • Location: Crib Point, Victoria, Australia
  • Coordinates: -38.366667, 145.333333 (approximate)
  • Capacity: 1.75 mtpa
  • Cost: A$250 million (US$176 million)[3]
  • Status: Cancelled[1]
  • Type: Import
  • Start Year: 2022

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

AGL has proposed a A$250 million LNG import terminal in Australia, nominating Crib Point as its preferred location. The gas import jetty purports to increase gas supply for south-eastern Australia. It plans for construction in 2019 and operation by 2021.[4] This would involve the redevelopment of an existing jetty to import 100 petajoules a year of LNG, enough to supply all the residential demand for the state of Victoria.[5]

In October 2018 the government of Victoria asked AGL for a full Environmental Effects Statement (EES) for the project, delaying the projected completion date by at least a year.[6] In June 2019 AGL stated that it expected to have the EES process completed by FY20, after which a final investment decision would be made. In March 2020 AGL announced that it was waiting to proceed to final investment decision (FID) after the project had received environmental and regulatory approval.[7] In August 2020 the Victorian government refused to delay the environmental assessment process for the terminal despite protests that Victoria's Covid-19 lockdown was preventing citizens from participating in the assessment process.[8]

Authorities in Victoria received 6059 mostly negative submissions about the project as part of the state's consideration of the environmental approval for the Crib Point Terminal, with hearings due to take place in October 2020. Central themes of concern were the project's likely impact on marine biodiversity, the legality of wastewater disposal, climate change impacts, the routing of the proposed Crib Point Pakenham Pipeline to connect the floating terminal into Victoria's main gas grid, the risk of fire and explosions and the overall need for the project at all. The panel overseeing the hearings submitted 164 requests to AGL Energy for further information, which the company must respond to by September 25.[9]

Following public hearings, in March 2021 Victoria's state government rejected AGL Energy's proposed project due to foreseen adverse encvironmental impacts. A concluding assessment from Victoria’s planning minister Richard Wynne stated that marine discharges from the proposed FSRU unit would result in ongoing damage to the environment over the 20-year life of the project.[3]

In May 2021, as a result of the blocking of the project by Victoria state, AGL announced that it had cancelled the project.[1]

Import/Export Controversy

As of 2017, Australia is the second largest LNG exporter after Qatar. The country exports almost 44 million tons a year.[10]

AGL is planning the import facility despite Australia being one of the world’s largest LNG exporters; the country exports so much gas that domestic supply has tightened. According to IEEFA, AGL’s investment in an import terminal is a bet by the company that Australian domestic gas prices will stay high enough in the future to cover the cost of liquefying foreign gas and shipping it to Australia.[4]

East Coast gas producers could be competing with imported gas if Crib Point is constructed. Santos and Cooper Energy are insistent that enough gas could supply Australia from Australian sources.[5]

Woodside's CEO said in August 2017 it would not be financially prudent to ship LNG directly from either Western Australia or from Darwin to Crib Point in Victoria because tankers would need all-Australian crews. This would cost more than bringing in gas from outside Australia.[5]

Articles and resources

References

Related GEM.wiki articles

External resources

External articles