AGL Energy Ltd., Sydney, has executed two key agreements for its proposed LNG import jetty at Crib Point on the west Gippsland coast of Victoria.
Firstly, AGL has made development and gas transportation agreements with APA Group for the development and construction of the Crib Point-Packenham gas pipeline and the ongoing transportation of gas from the proposed LNG jetty to the domestic market.
Under this agreement APA will source long lead-time items for the proposed pipeline. Construction and operation of the line is still subject to regulatory approvals, the granting of a pipeline license, and a final investment decision by AGL.
Secondly, AGL has made work, lease, and berthing and jetty agreements with the Port of Hastings Development Authority for the long-term use of the Crib Point jetty berth No. 2. The PHDA will begin jetty remediation work to prepare for AGL’s exclusive occupation of the berth No. 2 for the continuous mooring of a floating storage and regasification unit (FSRU). Again, the agreement is subject to regulatory approvals and an FID by AGL.
AGL says it hopes to reach FID for the project during the 2019 fiscal year and aims to start gas deliveries into the Victorian and other southern states domestic market during the 2021 fiscal year.
The company is progressing its environmental approvals and licensing requirements and continues to negotiate other key commercial arrangements for LNG supply and for long-term charter of the FSRU.
AGL is also working closely with the local community in its development plans for the Western Port region.
The plan to use Crib Point has the merit of an existing deepwater jetty that currently functions as a petrol import point. Selection of another location would require construction of a new jetty and significant excavation of the bay floor.
