Venice Energy moves forward with South Aussie LNG import terminal project

South Australian energy infrastructure developer Venice Energy announced on June 6 that it had moved to formal negotiations with several companies for the A$300mn ($200mn) Outer Harbour LNG import terminal project.

“The good news is that we now have a formal written offer on the table and have made significant advances with companies that develop and operate LNG import terminals and energy-related infrastructure around the world,” said Venice Energy chair Kym Winter-Dewhirst. “The companies we are negotiating with have the balance sheet strength and the on-the-ground expertise to fully develop this type of project. Our aim is to finalise this and push hard towards a final investment decision by August this year, with a construction start date in October.”

The Outer Harbour LNG terminal project involves the development of two berths at Port Adelaide, a floating storage and regasification unit (FSRU), cryogenic piping, and associated infrastructure. Stage 1 enabling works at Outer Harbour have been completed, making the project "shovel-ready."

In February, Venice Energy inked an agreement with Singapore-based A&G LNG for the supply of the FSRU for the project. In July 2021, Venice initially signed an agreement with GasLog to negotiate a charter party for the supply of the FSRU. Following GasLog's restructuring and decision to sell certain vessels, AG&P LNG emerged as the purchaser of the vessel designated for the Outer Harbour LNG project.

Venice Energy last October finalised a structural framework agreement with Origin Energy for LNG importation from the Outer Harbour LNG import terminal to be constructed at Port Adelaide.

The company has on many occasions emphasised the need for additional gas supplies to counteract the decline in local production and support the transition to gas power, reducing carbon emissions from coal and serving as a backup for expanding renewables.