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    Venice secures FSRU supply pact with AG&P LNG for Aussie LNG import project

Summary

The Outer Harbor LNG terminal project involves the development of two berths at Port Adelaide, the FSRU, cryogenic piping, and associated infrastructure. [Image: Venice]

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Security of Supply, Corporate, News By Country, Australia

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Venice secures FSRU supply pact with AG&P LNG for Aussie LNG import project

South Australian energy infrastructure developer, Venice Energy, has inked an agreement with Singapore-based A&G LNG for the supply of the floating storage and regasification unit (FSRU) for its Outer Harbor LNG import terminal project, Venice managing director Kym Winter-Dewhirst said on February 15.

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-off certain vessels, AG&P LNG emerged as the purchaser of the vessel designated for the Outer Harbor LNG project.

“Following meetings with them [AG&P LNG] in Singapore late last year and this month in the UAE, we have secured a new commercial agreement that guarantees the project will receive the converted FSRU at an improved cost and in a timely manner,” Winter-Dewhirst said. 

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

Simultaneously, Winter-Dewhirst disclosed that Venice has attracted interest from several companies regarding the purchase of the project. CLSA has been appointed to oversee the process for interested companies, with 15 expressing interest to date, and eight registering for the due diligence process. These companies span various sectors, including existing energy operators, industrial gas consumers, international LNG-specific entities, and private equity players.

Venice Energy emphasises 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.

The Outer Harbor LNG terminal project involves the development of two berths at Port Adelaide, the FSRU, cryogenic piping, and associated infrastructure. Stage 1 enabling works at Outer Harbor have been completed, rendering the project "shovel-ready."

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