South Korea's Epik, Hyundai LNG Sign Agreement
South Korea LNG project developer Epik and Hyundai LNG Shipping have signed an agreement to work together in the development of floating storage regasification units (FSRU) projects around the globe, including Epik’s recently announced Newcastle LNG FSRU import project at the Port of Newcastle, Australia.
“Partnering with Hyundai LNG Shipping marks a key strategic milestone for Epik, contributing significant expertise and support to the advancement of our flagship Newcastle LNG project,” Jee Yoon, Epik’s managing director, said February 25.
“Epik has identified a significant opportunity for the NSW market with the Newcastle LNG project,” said KyuBong Lee, Hyundai LNG Shipping CEO. “We are thrilled to be partnering with Epik at this critical stage of the company’s growth and look forward to building a strong and lasting relationship that will benefit all parties involved.”
In December 2018, Epik said it has entered into an agreement with Port of Newcastle, Australia to commence preliminary works on a proposed FSRU project. The potential investment for the Newcastle LNG project is estimated to be between US$400mn and US$430mn, which will include a 170,000 m3 class new-build FSRU and associated on-shore infrastructure. Epik expects to place an order for the FSRU new-build with a shipyard subject to receiving regulatory approvals for the project, which the company currently estimates to receive by early 2020.
In addition to the import terminal, Epik said it is exploring the possibility of additional gas related infrastructure that would be of benefit to the NSW region, including potential gas-fired power and LNG bunkering facilities.