Study confirms South Aussie LNG terminal can serves the east coast

A joint study by South Australian LNG import terminal developer, Venice Energy, and SEA Gas, the owners of the 680km pipeline between Victoria and SA, has confirmed the pipeline can be reconfigured to facilitate bi-directional flow between the states, Venice said on May 4.

This means the proposed LNG terminal in the Outer Harbor at Port Adelaide will ensure that both South Australia and Victoria can secure their gas supplies and avoid shortages, particularly during the peak winter period, the company added.

Venice Energy managing director, Kym Winter-Dewhirst, said last season’s gas shortages in the southeast of Australia, particularly in Victoria, will become a thing of the past once the project becomes fully operational in 2026.

“Most gas producers, analysts and regulators agree that domestic gas supplies in southeast Australia will fall significantly over the next decade as coal begins to exit the local market and gas becomes the primary back-up for renewable energy due to its intermittent nature,’ he said. “We believe that imported LNG provides insurance to energy supply companies as the nation makes its transition to a low carbon economy over the next 10-15 years and our LNG terminal will play a major role in that transition.”

Venice Energy’s Outer Harbor project can receive LNG from both the Northwest Shelf and Gladstone along with access to international gas supplies. It will also provide additional storage via its floating storage and regasification unit (FSRU), through the 680km SEA Gas pipeline and by maintaining storage at the Iona underground storage facility west of Melbourne via regular shipments, especially during peak winter periods.

The final investment decision (FID) on the project is expected by August this year and construction is likely to start in October. It received the project approvals from the South Australian government in December 2021, with the project receiving both Crown Sponsorship and being designated as “essential infrastructure” by the state.

Venice Energy signed a memorandum of understanding last year with the Japanese trading house, Marubeni, to create a joint venture partnership for its A$260mn ($177mn) LNG import terminal project. The terminal will include the development of two berths at Port Adelaide, along with an FSRU, cryogenic piping and associated infrastructure.