Australian Industrial Energy (AIE) announced that it has signed a long-term charterparty agreement with Hoegh LNG to supply the first Floating Storage and Regasification Unit (FSRU) to operate at the Australian company’s proposed Port Kembla Energy Terminal.
Under the agreement, the Hoegh Galleon FSRU will serve the terminal, “which has commenced construction of its berth facilities at Port Kembla, and is expected to be operational by mid-2023, making it the first project of its kind in Australia.”
In addition, AIE and Hoegh LNG have agreed to collaborate on the future design and development of a new generation FSRU capable of receiving clean fuels which can be used as part of future green energy supply chains and support a future hydrogen energy industry in Australia.
“With the phasing down of Australia’s fossil fuel industry already underway, the Terminal will be critical to ensuring hundreds of thousands of Australian businesses and households avoid supply shortfalls from 2023 onwards,” AIE’s chairman Andrew Hagger said. “Now that critical infrastructure agreements and approvals are in place for the Terminal, we look to NSW and Victorian natural gas retailers to now take active steps to help resolve the energy security crisis they have warned about.”

 

Backgrounds quoted from the Global LNG Database®:

On 27 May 2021, Hoegh LNG said that it has entered the final stages of negotiations with Australian Industrial Energy (AIE) for supply its Port Kembla project with FSRU services.
On 18 Mar. 2021, Australian energy infrastructure company Jemena announced that it has signed a deal with Australian Industrial Energy (AIE) to connect the Port Kembla Gas terminal to the 797-Km Eastern Gas Pipeline (EGP) by a 12-km underground gas pipeline.
“The ACCC recently identified a potential for a gas shortfall of around 30 petajoules from as early as 2024 unless an LNG regasification terminal or speculative resources are developed. This project is the most advanced, and best way, of helping to meet this shortfall and will bring additional gas to Victoria and NSW before this deadline at globally competitive prices.”
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