Australia’s Venice Energy is in talks to secure a “major international balance sheet partner” for its much-delayed LNG import terminal.
The Adelaide-based company has begun “formal negotiations” with two unnamed companies said to have “extensive experience” in energy-based infrastructure projects.
Venice Energy said the negotiations follow an eight-month market-sounding process that resulted in the two offers.
Venice Energy chairman Kym Winter-Dewhirst said the framework to enable negotiations to begin is “now in play” and includes a project term sheet, a draft joint development agreement and documented progress with key LNG off-take customers.
“The ultimate success of this project will be achieved with the backing of a partner with the skills, track record and most importantly, the financial strength, to underwrite the delivery of the terminal,” he said.
“At the start of this year we indicated that a final investment decision could be achieved in the second half of 2024, which in turn would allow the next phase of the project to commence sometime in October/November.
“Maintaining this schedule is very important because it will ensure we can complete the project construction by the end of 2026 and then begin the commissioning process to enable first gas to be delivered to customers ahead of winter 2027,” Winter-Dewhirst added.
Venice Energy’s LNG import terminal, located in the Outer Harbor in Port Adelaide, has received all primary government approvals, and when operational, will be one of the first terminals in the world to use 100% renewable energy for its own operations.
However, the project has been protracted and has seen a number of issues including a change in the supplier of the floating storage and regasification unit for the terminal.
In February 2024, United Arab Emirates-headquartered LNG terminal developer AG&P LNG emerged as the new supplier of the FSRU, replacing Peter Livanos-led GasLog.
Venice Energy signed an FSRU supply agreement with GasLog in mid-2022 under a deal that would have also seen the Greek shipowner provide a technical support crew to operate the facility.
However, GasLog underwent a major restructuring in 2023 and in doing so decided to sell off several vessels to other companies.
The Venice Energy 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 terminal in Port Phillip Bay, Victoria, with the first imports expected to take place in 2026.
