AG&P LNG has emerged as the new supplier of a floating storage and regasification unit for an LNG import terminal in the Australian port of Adelaide.
The United Arab Emirates-headquartered LNG terminal developer has replaced GasLog on the Outer Harbour Project, according to project developer Venice Energy.
Venice signed an FSRU supply agreement with GasLog in mid-2022 under a deal which would have also seen the Greek shipowner provide a technical support crew to operate the facility.
However, GasLog underwent a major restructuring last year and in doing so decided to sell off several vessels to others, according to Venice.
“In December 2023, AG&P LNG … emerged as a strategic partner to our project to provide the fully converted FSRU,” Venice chairman John Nicholson said.
“We had some good discussions with them over the past two months and we have secured a new commercial understanding that guarantees the project will receive a converted FSRU at an improved cost and in a timely manner.
“The FSRU for the Outer Harbour project shall be fully converted by AG&P subsidiary GAS Entec in a South Korean shipyard,” Nicholson added.
Separately, Venice said it had been approached by a number of companies to discuss the purchase of the LNG import terminal.
The company said it has appointed international mergers and acquisitions specialists CLSA to run a process for interested companies.
“To date, 15 companies have expressed their interest in the project and eight have so far registered as part of the due diligence process,” Nicholson said.
“Although the requirements of non-disclosure agreements prevent us from naming these companies, I can say they come from a number of different sectors, including existing energy operators, industrial gas consumers, international LNG-specific companies and some private equity players.”
The much-delayed Venice project is one of several LNG-import terminals under development to help fill an expected shortfall in gas supply in south-east Australia as output declines from Australia’s Bass Strait fields.
Australian Industrial Energy, which is backed by Squadron Energy, is planning an FSRU-type terminal project at Port Kembla in New South Wales.
Other projects include those by Australian power company Viva Energy and South Korean private equity firm EPIK, which is working with Hyundai LNG Shipping.
Dutch terminal operator Vopak is aiming to build a facility in Port Phillip Bay, Victoria, with first imports expected to take place in 2026.
