Woodside, Viva Energy have entered into a memorandum of understanding (MoU) to progress discussions on capacity rights at Viva Energy-proposed Geelong floating LNG imports terminal in Victoria.
Woodside, Viva Energy have entered into a memorandum of understanding (MoU) to progress discussions on capacity rights at Viva Energy-proposed Geelong floating LNG imports terminal in Victoria which “could enable Woodside to supply LNG to the east coast Australian market.”
Under the terms of the MoU, Woodside will discuss with Viva Energy the opportunity to acquire regasification capacity usage rights at the proposed terminal which is “a key infrastructure solution to address the expected gas supply shortfall in the east coast Australian market from the mid-2020s, and support the National Electricity Market’s transition to lower-carbon energy,” Woodside said in its statement.
According to the
Global LNG Database®, Viva Energy had already signed MOUs with two commercial partners for its proposed Geelong terminal in December 2020. The partners comprise two consortiums, the first being a partnership between Engie and Mitsui & Co. and the second between Vitol and VTTI.
Earlier, an Expressions of Interest (EOI) process was conducted by the Australian company to seek proposals from commercial parties to partner alongside Viva Energy in its role as terminal developer, operator and user.
Viva is racing against Australian Squadron Energy which planned to build the first LNG import terminal in Port Kembla, in neighbouring New South Wales state.
The new MOU provides a framework and timeline to negotiate binding regasification capacity commitments, to be finalised in definitive agreements executed following Woodside and Viva Energy approvals prior to a final investment decision targeted for the third quarter of 2022.
“Our MoU with Viva Energy presents an opportunity for Woodside to supply reliable, cost-competitive LNG from our Western Australian projects and global portfolio into the east coast gas market, which is predicted to face a shortfall in coming years,” Woodside CEO Meg O’Neill said.
Viva Energy CEO Scott Wyatt said that Woodside’s potential participation in the LNG import project “highlights the value of LNG terminals as ‘virtual pipelines’ to deliver LNG from Australia and other sources into the east coast domestic gas market.”
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