A Memorandum of Understanding (MoU) was signed at the beginning of June between a new, Australian-led international consortium, Australian Industrial Energy (AIE) and NSW Ports enabling AIE to enter into the engineering and design phase of a new LNG Import Terminal.
AIE has selected Port Kembla as the site for its proposed new terminal. The Port Kembla Gas Terminal will have the ability to supply in excess of 100PJ of natural gas per year, which is sufficient to meet over 70% of NSW’s total gas needs.
The LNG import terminal will be named the Port Kembla Gas Terminal (PKGT). Development and construction of the terminal will make AIE a central player in the NSW and broader east coast gas market. The Port Kembla Gas Terminal will deliver substantial benefits locally in terms of energy, employment and economic security. Construction of the terminal is likely to require a capital investment of between AU$200m and AU$300m.
Importantly, the increased certainty of affordable gas supply to NSW would help maintain the financial viability and prosperity of industries employing more than 15,000 people across the Illawarra region and an estimated further 300,000 manufacturing jobs throughout NSW that are reliant on available and affordable natural gas.
The Port Kembla Gas Terminal has received strong support from a wide range of regional business and major Industrial and Commercial gas customers. AIE has to date entered into 12 Memorandums of Understanding (MoU’s) for the supply of gas, providing the AIE Consortium confidence to move to the detailed engineering phase of the project.
AIE Chief Executive Officer, James Baulderstone, said: “NSW is facing significant challenges in ensuring available and affordable gas supplies and we are working to make this project a reality as quickly as possible. In recent times wholesale gas prices have doubled, and in many cases tripled in NSW. In addition, many industrial companies are now unable to secure gas for any period longer than 12 months.
“The world-leading expertise of the AIE partners, now combined with the enthusiasm of NSW Ports and Port Kembla’s regional business community to see this project realised, means AIE is well placed to deliver firm, long term gas on highly competitive pricing and terms as soon as 2020.”
Gaku Takagi, Senior Vice President, Fuel Business Development and Gas & Power Development Team Leader, JERA Co said: “As the largest buyer of LNG in the world, JERA is able to bring ample, competitively priced LNG to NSW. JERA is very excited to be working with our colleagues at Marubeni who have world-wide energy investment and infrastructure expertise and of course Squadron Energy which brings deep knowledge of the Australian gas and energy markets. Together, we believe we can make a major contribution to NSW and east coast energy supply competition and security.”
For more information, visit: www.ausindenergy.com
5th June 2018