LNG terminal agreement

A new deal has been signed to co-develop a new generation clean energy terminal in Australia.

Australian Industrial Energy (AIE) has signed a long-term charterparty agreement with energy infrastructure and transport provider Höegh LNG to supply the first Floating Storage and Regasification Unit (FSRU) to operate at the Port Kembla Energy Terminal.

Andrew Hagger, chairman of AIE, said the agreement with Höegh LNG supports AIE’s vision to actively resolve the energy crisis on the east coast and accelerate the use of clean energy fuels that support net zero ambitions.

“With the phasing down of Australia’s fossil fuel industry already underway, the terminal will be critical to ensuring hundreds of thousands of Australian businesses and households avoid supply shortfalls from 2023 onwards,” he said.

Energy agreement

Under the agreement, the Höegh Galleon will serve the terminal, which is under construction at Port Kembla and is expected to be operational by mid-2023 – the first project of its kind in Australia.

In addition, AIE and Höegh LNG have agreed to collaborate on the future design and development of a new generation FSRU capable of receiving clean fuels which can be used as part of future green energy supply chains.

Initial feasibility work on the new FSRU will now begin and while the final design is yet to be confirmed, the vessel is expected to have the capability of delivering both natural gas and green hydrogen or derivatives thereof, unlocking further opportunities for the terminal to support a future hydrogen energy industry in Australia.

Höegh LNG is a leading FSRU provider with a large, modern fleet of FSRUs transporting and regasifying natural gas globally.

The Höegh Galleon is the newest FSRU in Höegh LNG’s fleet and it will be used to receive, store and regasify liquefied natural gas at the terminal when operations begin.