Port Kembla LNG terminal secures supply deal
EnergyAustralia has signed a preliminary agreement to access gas supply from Australian Industrial Energy’s (AIE) LNG import terminal project at Port Kembla.
AIE will provide 15PJs of natural gas per annum as part of the five-year contract, due to commence 1 January 2021. The gas will be utilised for EnergyAustralia’s residential and industrial customers as well as for electricity generation.
Stuart Johnston, CEO of Squadron Energy, one of the AIE joint venture partners, said: “Our agreement with EnergyAustralia shows that the Port Kembla gas terminal is a real solution for Australian energy retailers and manufacturers looking to avert the looming gas supply crisis.”
Other AIE joint venture partners include global energy infrastructure investor Marubeni Corporation; and the world’s largest buyer of LNG, JERA Co. Inc.
Ready in 2020
The deal follows the NSW Government’s decision in April 2019 to award development consent to AIE’s Port Kembla gas terminal (PKGT), creating a pathway for the terminal to be constructed by mid to late 2020.
The AUS$250m project, which the NSW Government designated ‘Critical State Significant Infrastructure’ last year, could supply more than 70% of the state’s gas needs.
The AIE joint venture partners expect to make a final investment decision to proceed with the terminal in the next few months.
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