AIE moves Port Kembla forward with site lease

Nov. 13, 2020

Squadron Energy Group unit Australian Industrial Energy has signed a long-term lease agreement with NSW Ports for a dockside site in Port Kembla, 112 km south of Sydney, for development of the company’s proposed LNG import terminal.

Rick Wilkinson

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.