Australia-headquartered Viva Energy, an energy infrastructure business, has engaged the services of Poten & Partners, a liquefied natural gas (LNG) consultant, to secure a floating storage and regasification unit (FSRU) for its proposed LNG terminal in Geelong, Australia.
According to Viva Energy, Poten & Partners is casting a wide net to obtain expressions of interest from the global maritime industry to supply an existing FSRU or retrofit an LNG carrier into an FSRU for the terminal. The new terminal, which is awaiting regulatory approval for its construction adjacent to the Australian firm’s oil refinery in Geelong, requires a vessel with a substantial capacity of between 160,000-180,000 cubic meters (cbm) of gas.
This unit should be capable of delivering up to 750 million standard cubic feet of gas per day. Viva Energy has confirmed negotiations with potential capacity holders, which it describes as well advanced. An environmental impact assessment from the Victorian government is anticipated in April 2025, setting the stage for the firm to make a final investment decision (FID) by the end of the year.
If this terminal gets a stamp of approval, it is slated to begin operations in 2028, which the company believes will be in time to address the gas shortfall forecast for Australia’s southeast coast. The proposed gas terminal project involves adding an extension to the existing Refinery Pier in Corio Bay, mooring an industrial ship to receive shipments of LNG and turn it back into vapor, the construction of a gas pipeline connecting to the Victorian Transmission System, and a new, onshore treatment facility.
The Australian player points out that the market forecasts by the Australian Energy Market Operator (AEMO) make it clear that Victoria will need an alternative way to keep supplying the gas it needs for households, industries, and electricity generation, as over 2.2 million households and 60,000 businesses rely on gas every day.
Last year, Australian Energy Producers described TGS’ decision to cease its search for gas supply in Otway Basin as “a major blow” to Victoria’s energy security, seeing it as a way to compound looming gas shortfalls in eastern Australia.
This followed the Australian Competition and Consumer Commission (ACCC)’s report , which outlined that areas where investment was stifled by bans and regulatory uncertainty, such as in New South Wales and Victoria, would rely on other states for gas supply, despite having untapped gas resources.