Australian Industrial Energy (AIE) has won approval to increase the amount of LNG it can import via a floating storage and regasification unit at Port Kembla.
The developer of Australia’s first LNG FSRU import terminal said it will now be able to satisfy the market need for more gas during winter months.
AIE said that with the planning approval from the state of New South Wales (NSW) in hand, it would now focus on securing customers for the AUD 250m ($159m) terminal.
If AIE reaches a final investment decision this year, it could start importing LNG by 2022, with construction expected to take 14 to 16 months.
“This terminal will make the state of NSW more self-sufficient when it comes to energy and will create greater access to the global gas market,” Mike Young, the NSW planning department’s energy, resources and compliance head, said.
Late last year, AIE said it was seeking to increase the number of annual LNG cargoes received at the terminal from 26 shipments of 170,000-cbm to up to 46 shipments of variable size vessels to reflect the variability in demand.
Hoegh LNG is supplying the 170,000-cbm FSRU Hoegh Galleon (built 2019) for the project under a long-term charter with AIE.
The project is backed by the world’s biggest LNG buyer, Japan’s JERA, as well as Japanese trading house Marubeni Corp and Australian mining billionaire Andrew Forrest’s Squadron Energy.
AIE’s Port Kembla terminal is one of four projects aiming to bring gas into south-east Australia to fill a looming shortage.
