Squadron Energy Group unit Australian Industrial Energy Pty Ltd. (AIE) has signed a long-term lease agreement with NSW Ports for a dockside site in Port Kembla, 112 km south of Sydney in New South Wales, for development of the company’s proposed $250 million (Aus.) LNG import terminal (OGJ Online, Apr. 1, 2020).
The lease agreement includes a 10-year initial term with options to extend up to a maximum of 25 years.
AIE will immediately begin a site handover process, paving the way for the commencement of construction work.
The company says construction is expected to take 18-20 months with the terminal expected to receive first LNG by end 2022.
In October, Squadron bought out its Japanese partners in AIE (JERA and Marubeni Corp.) to move to a 100% interest in the venture (OGJ Online, Oct. 20, 2020).
The terminal will provide capacity to meet 70-75% of New South Wales’ gas demand with a supply of 100 petajoules/year.
The project will import LNG by seaborne carriers and transfer it to a permanently moored floating storage and regasification unit in the harbor. Construction work includes associated wharf facilities and a 6 km-long pipeline connection to the existing Australian east coast pipeline grid.