Australian Industrial Energy (AIE) has secured a critical component of its Port Kembla Gas Terminal. The Floating Storage and Regasification Unit (FSRU) will be supplied under charter contract from the global leader in the development and operation of modern FSRUs, Norway’s Höegh LNG. 

Höegh is a recognised pioneer in the international shipping industry, having commenced operations nearly 100 years ago. As part of their shipping and logistics activities, Höegh LNG has provided specialised operations in LNG carrier transport and regasification for more than 40 years. They are the largest global supplier of FSRUs, accounting for over 30% of the current global FSRU fleet. 

Under the Exclusivity Agreement signed with Höegh LNG, AIE has the right to lease one of Höegh LNG’s state-of-the-art 300-metre-long 170,000 cbm FSRUs. The FSRU will be permanently moored at Berth 101 in Port Kembla’s inner harbour for the duration of the Time Charter Party contract. The FSRU has the capability of re-gasifying liquefied natural gas that can then be injected through high pressure loading arms into a pipeline from the berth to the existing east coast gas transmission network, approximately 10 kms away. 

The FSRU will form part of the final port infrastructure design plans which will also address the NSW Government’s planning assessment and development approval requirements. These requirements were provided to AIE last week under the Government’s Critical State Significant Infrastructure planning process. Final receipt of such approvals will be an important step towards AIE being in a position to make a final investment decision enabling the supply of gas to industrial customers from Q1 2020. 

CEO of AIE, James Baulderstone said: “Securing the FSRU charter and confirmation of the NSW Government’s planning requirements are two further important milestones for our project. We remain on schedule to deliver gas to our industrial customers during early 2020. Our schedule coincides with the expected significant tightening of the east coast gas supply market, especially for major industrial users.” 

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22nd August 2018