EnergyAustralia agrees to buy gas from Port Kembla LNG facility

Energy retailer EnergyAustralia has made an agreement with proposed Port Kembla LNG import facility operator Australian Industrial Energy (AIE) to buy 15 petajoules of gas a year over 5 years starting from January 2021.

May 23rd, 2019

Energy retailer EnergyAustralia has made an agreement with proposed Port Kembla LNG import facility operator Australian Industrial Energy (AIE) to buy 15 petajoules of gas a year over 5 years starting from January 2021.

The gas price will be oil-linked.

EnergyAustralia is the first customer to sign up for gas from the proposed facility which intends to moor a floating storage and regasification unit at Port Kembla, located about 100 km south of Sydney in New South Wales. Several similar deals are needed for the project to reach fruition.

AIE is a joint venture comprising JERA and Marubeni Corp. of Japan and Australian mining entrepreneur Andrew Forrest’s Squadron Energy.

AIE is endeavoring to secure base customers before making a final investment decision for the project.

The Port Kembla terminal, estimated to cost A$250 million to establish, plans to import about 2 million tonnes of LNG per year for regasification and onward supply into the New South Wales domestic pipeline grid.

The Port Kembla terminal is one of five proposed LNG import terminals around southeast Australia planned to help meet a perceived looming gas shortage in the region.

More in LNG