Sydney-based gas and electricity provider AGL Energy has chosen Crib Point, near Hastings on Western Port Bay in southern Victoria, as its preferred site for a gas import jetty and pipeline.
Once the location of BP PLC’s Western Port refinery, Crib Point is close to the ExxonMobil-BHP Billiton gas and oil facilities at Long Island Point that are connected by pipeline to the combine’s Longford processing plant in Gippsland and on into Victoria’s gas distribution network.
AGL says Crib Point is the best-placed location to serve Victoria, which is Australia’s largest gas market. It is also the best place to take advantage of the existing pipeline grid, industrial port facility, and associated systems.
AGL has been studying the economics and feasibility of an LNG import terminal in southeast Australia for several years as a means to ease the potential gas supply shortage in Australia’s east coast gas market. The study includes the ability to buy gas either on a contract or spot price basis.
The $200-300 million (Aus.) concept includes a regasification terminal—either shore-based or possibly a floating storage and regasification unit—as well as connections into the gas supply pipeline grid. A final investment decision is expected in 2018 with construction beginning in 2019 for the terminal to be in operation in 2020-21.
The plan has already attracted interest from international gas suppliers as well as those within Australia.
AGL said it will continue to engage with relevant stakeholders, including government authorities and the Western Port community to complete its feasibility studies on the proposed site.
The naming of Crib Point accelerates the program as the company moves towards a formal application to the Victorian government.