Exxon Shelves Oz LNG Import Terminal Project: Press

ExxonMobil has cancelled its plan to build an LNG import terminal on the coast of Victoria in Australia, Sydney Morning Herald reported December 2 citing a company statement.

According to the newspaper, ExxonMobil said it had been engaging with customers to gauge their interest in committing to longer-term supply to help underpin the significant investment in the proposed new terminal, but customers were unwilling to strike lengthy commitments.

"There was insufficient interest from potential customers," a company spokesman said. "At this stage, we have not received sufficient market interest to advance an LNG import project, however, we will continue to assess the market and work with customers to meet their supply needs."

Potential customers have been deterred from locking themselves into long-term contracts with ExxonMobil in part due to the federal government powers to restrict gas exports, which could lower prices, Sydney Morning Herald said.