The Australian-led consortium, Australian Industrial Energy signed a deal with Norway’s Höegh LNG for the supply of a floating storage and regasification unit (FSRU) for the proposed Port Kembla Gas Terminal (PKGT)
The FSRU will be moored at Berth 101 in Port Kembla’s inner harbor and accept cargoes of liquefied natural gas from LNG carriers, store the LNG and convert it onboard from liquid back to gas, the company said in a statement.
The gas will then be transferred onshore and be piped into the gas transmission network, AIE said.
The facility, the first LNG import terminal in New South Wales, will have the capacity to supply in excess of 100PJ per annum, sufficient to meet over 70 percent of NSW’s total gas needs.
Construction of the terminal is likely to require a capital investment of between $200m and $300 million, AIE said in an earlier statement.
The consortium, comprising Australia’s Squadron Energy and Japan’s Marubeni and Jera, added the facility will provide increased certainty of gas supply to New South Wales.