AIE Eyes Imminent Approval of OZ LNG Import Project

Australia Industrial Energy (AIE) said March 6 that it hopes to win approval for its Port Kembla LNG import terminal in “the coming weeks” and then take a final investment decision (FID).

Noting that it submitted a positive Environmental Impact Statement (EIS) in November, and that key supply and offtake contracts are “nearing finalisation,” AIE said in a statement that it hopes to obtain development consent for the eastern coast project from the New South Wales (NSW) government soon.

“Since its launch in March 2018 the Port Kembla Gas project has made significant progress and is in the last stage of preparation for the final investment decision,” the statement reads. 

Australia is on track to become the world’s largest exporter of LNG and does not currently import the fuel. But a tight supply outlook for the country’s east coast has led to the announcements of a number of separate import project plans for the region.

“Port Kembla is now the most advanced of the proposed LNG import projects in Australia,” the AIE statement said.

The project is planned to have capacity of over 2.7bn m³/year, which would meet over 70% of NSW’s total gas needs, according to the company. No details of the supply and offtake contracts under discussion were offered.

The company added that design has been completed for a selected site and an FSRU secured. Australia’s Squadron Energy and Japan’s Jera and Marubeni Corporation are AIE’s partners on the project.

AIE has said it anticipates having gas to market in the first quarter of 2020. The LNG import project was declared as critical infrastructure by the NSW government in June 2018, which has helped to fast-track the approval process.