Hoegh LNG to Provide FSRU for Port Kembla Gas Terminal
- Business & Finance
Norway’s Höegh LNG, the world’s largest supplier of FSRUs, has won a contract with Australian Industrial Energy (AIE) to provide an FSRU for the consortium’s Port Kembla Gas Terminal.
Under the exclusivity agreement, AIE has the right to lease one of Höegh LNG’s 300-metre-long 170,000m3 FSRUs.
The FSRU will be permanently moored at Berth 101 in Port Kembla’s inner harbour for the duration of the charter.
“Securing the FSRU charter and confirmation of the New South Wales (NSW) Government’s planning requirements are two further important milestones for our project. We remain on schedule to deliver gas to our industrial customers during early 2020. Our schedule coincides with the expected significant tightening of the east coast gas supply market, especially for major industrial users,” CEO of AIE, James Baulderstone said.
As disclosed, the FSRU will form part of the final port infrastructure design plans which will also address the NSW Government’s planning assessment and development approval requirements.
The consortium expects to start supply of gas to industrial customers from the first quarter of 2020.
The Port Kembla Gas Terminal project will have an initial capacity to supply in excess of 75% of NSW annual gas needs.
AIE, a consortium formed in 2017, is comprised of Squadron Energy, Marubeni Corporation, and Japan’s JERA Co, the world’s largest buyer of LNG.